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G>V 1.1: 

987 



1987 
Annual Report 



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J. GOVERNMENT PRINTING OFFICE 



































































































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GPO Management 



The Joint Committee on Printing 



Frank Annunzio 
Representative from Illinois 
Chairman 

Joseph M. Gaydos 
Representative from Pennsylvania 

Leon E. Panetta 
Representative from California 

Robert E. Badham 
Representative from California 

Pat Roberts 
Representative from Kansas 



Wendell H. Ford 
Senator from Kentucky 
Vice Chairman 

Dennis DeConcini 
Senator from Arizona 

Albert Gore, Jr. 
Senator from Tennessee 

Ted Stevens 
Senator from Alaska 

Mark O. Hatfield 
Senator from Oregon 



Richard Oleszewski 
Staff Director 



GPO Senior Staff 

Ralph E. Kennickell, Jr. 

Public Printer of the United States 

S. Bruce Scaggs 
Assistant Public Printer 
(Operations and Procurement) 

Burkey W. Boggs 
Assistant Public Printer 
(Night Operations) 

Grant G. Moy, Jr. 
General Counsel 

Stuart M. Foss 
Executive Advisor 



Joseph E. Jenifer 
Deputy Public Printer 

Donald E. Fossedal 
Assistant Public Printer 
(Superintendent of Documents) 

Patricia R. Gardner 
Assistant Public Printer 
(Administration) 

Joyce Blalock 
Inspector General 

James N. Joyner 

Director, Customer Service Staff 



Table of Contents 

Public Printer's Message 1 

Deputy Public Printer's Message 3 

Operations 6 

Procurement 9 

Superintendent of Documents 11 

Administration 14 

Human Resources 16 

Financial Highlights 17 

Financial Statements 18 



Public Printer's Message 




Ralph 



E. Kennickell, Jr 
Public Printer 



Fiscal 1987 was a 

watershed year for the 

Government 

Printing Office. 



We could not have 

attained such financial 

heights without the 

commitment 

of our customers. 



It would not be overdramatic to say that fiscal 1987 was a watershed year for 
the Government Printing Office. Financially speaking, it was our best year ever; 
technologically, we began a reequipping process and expansion of services 
unprecedented in our history; to ensure our continued success, we built upon 
the complete turnaround in customer relations begun two years ago; and, in 
terms of human development, we committed ourselves to ambitious training and 
literacy programs. 

When I say "best year ever," I mean that 1987 was remarkable for financial 
successes across the board. In-house printing showed a net income of $6.7 
million; purchased printing contributed another $4.8 million in net income; and 
the publications sales program netted over $11.4 million. Taken together, our 
total net income of $22.9 million eclipses last year's figure by $14.1 million, an 
increase of 158 percent. In addition, our need for appropriated funds for 
salaries and expenses under the bylaw and depository library distribution and 
cataloging programs declined by $1 .8 million. Although this improved financial 
picture can be partly attributed to the lifting of Gramm-Rudman restrictions, it is, 
in the main, a direct reflection of the improved attitude of our workforce, a 
workforce that believes in being demand-driven and service-oriented, men and 
women who are committed to working smarter and harder to reach a common 
goal. 

GPO's management is similarly committed to giving those workers the best 
equipment and the most advanced technology possible to accomplish their 
duties. As detailed elsewhere in this report, such innovations as on-line or "dial- 
up" composition, a bid information list for our contractors, and software for 
access and retrieval of the Congressional Record data base represent current 
application of state-of-the-art technologies. We are also reequipping our plant 
with the modern machinery needed to meet the ever-growing challenges posed 
by our mission. A new five-color postal card press and microprocessor- 
controlled cut/pack system and a highly automated binding line for U.S. 
Passports were installed this year; these units should be joined next year by 
two new high-speed offset web presses that will replace our aging 
Congressional Record presses. Our ultimate goal is to have machines that are 
faster, more flexible, and capable of higher quality products. 

We could not have attained such financial heights nor had the impetus to re- 
equip without the commitment of our customers. One of our greatest 
accomplishments has been to change our attitudes toward our customers as 
well as ourselves, thereby gaining their trust and confidence. Ours is no longer 
a relationship based on dictatorial powers, but one firmly founded in the 
importance of communication, in a spirit of cooperation, and in recognizing that 
we need one another. We are committed to expanding our services and to 
treating our customers as customers in the best sense of the word, and they 
have responded to that commitment with appreciation and a new 
interdependence. 

We are also committed to human development in some very important areas. 
First, the initial phase of development has begun to create a Federal Publishing 
Institute. This concept will evolve into a tool to help our customers upgrade the 
skills of their printing and publishing personnel and be a common ground for 
discussing mutual problems, coping with the application andwm'afia'gelment of 



1 



jUM 5 W 



Freedom cannot hope 

to exist in an 

illiterate society. 



As the information 

industry expands 

explosively, the world, 

in essence, shrinks. 



emerging technologies, and pooling our resources to meet the future of the 
Federal information industry together. The groundwork is being laid for this ef- 
fort through contacts with industry and intergovernmental groups and extensive 
research. The first phase should be well underway by late in fiscal year 1988. 

Second, we are taking a leadership role in the war on illiteracy in America. It is 
sad to reflect during the Bicentennial of the United States Constitution that many 
Americans cannot read, much less understand, this sacred document. We have 
joined with the Library of Congress in supporting the Presidential proclamation 
and Congressional resolution declaring 1987 "The Year of the Reader," and we 
are fully supporting the Federal Employee Literacy Training (FELT) program as 
well as other literacy programs. In addition, we are planning to sponsor a sym- 
posium on the economic impact of illiteracy on the print media in order to pro- 
vide a neutral ground for the industry to discuss this vital issue. It is intolerable 
that an ever-expanding explosion of information is being directed at an increas- 
ingly illiterate population, for freedom cannot hope to exist in an illiterate 
society. 

We are also committed to the improvement of communications among govern- 
ment printers around the world. The pressures of technological change and 
fiscal constraints are leading government printers to view the problems they 
face as common to all, and to look to each other for guidance and assistance 
in overcoming them. To that end, GPO will host the International Government 
Printers' Conference in June 1988. The Conference will provide delegates with 
a forum for the presentation of technical papers, discussion of the formation of 
a permanent International Government Printers' Association, an opportunity to 
gain information on GPO's International Exchange Visitor Program, and a 
chance to visit and review GPO's production, procurement, and distribution 
operations. It is our hope that Conference attendees will be able to gain new in- 
sights into current government printing issues in an environment which pro- 
motes the free exchange of information, ideas, opinions, experience, and 
expertise with professional colleagues and expert practitioners. We must 
recognize that, as the information industry expands explosively, the world, in 
essence, shrinks; that we are as much a part of the world community as we are 
of our immediate surroundings. 

GPO's transformation as an agency has been dramatic. We are on the best 
financial footing in our history, we stand on the leading edge of applied 
technology, and we enjoy a remarkable relationship with our customers. With 
this success comes the serious responsibility to serve in a leadership role in the 
information industry. Therefore, as we enter this era of challenge and uncer- 
tainty, we confidently offer GPO as a catalyst, ready to facilitate the examination 
and advancement of the information needs of the Federal community, the 
Nation, and the world. 




Ralph E. Kennickell, Jr. 
Public Printer 



Deputy Public Printer's Message 




Joseph E. Jenifer 
Deputy Public Printer 



Customer Service Staff 



Fiscal year 1987 was not only the most successful year in GPO's history, but it 
was one in which stock could be taken of how well we were doing our job. 
Looking only at the "bottom line" can cause an organization to lose sight of how 
it arrived at its success. To that end, we realized that, in order to become a 
truly service-oriented agency, certain organizational changes had to be made, 
changes which had a fundamental impact on the way we deal with our 
customers and with one another. 

First, the position of Assistant Public Printer for Operations and Procurement 
was created, bringing together the Production and Printing Procurement 
Departments along with other vital support functions. This made it possible for 
GPO's printing and binding operations, representing nearly 90 percent of GPO's 
revenue, to work as a single unit to fulfill our customers' needs. Dividends have 
already been seen in terms of improved communications and a more 
streamlined decisionmaking process. 

The second change involved service to Congress, our primary customer. 
In order to obviate potential problems in our second- and third-shift in-plant 
operations, which produce Congressional work almost exclusively, the position 
of Assistant Public Printer for Night Operations was established. This elevation 
to APP status marks the first time in GPO's history that such emphasis has been 
placed on our night operations and reflects our commitment to service and 
the importance we place upon maintaining our excellent relationship with the 
Congress. 

The effort to improve our operations and communications, both internal and 
external, is a recurring theme throughout the accomplishments of the various 
organizations within GPO in fiscal year 1987. The transition has truly been 
made to a demand-driven, service-oriented agency, one that can meet the 
challenges of new technologies and rapid change in stride. 

The Customer Service Staff, which coordinates all aspects of the printing, 
binding, and distribution requirements of the Congress and Federal agencies, 
made substantial contributions to our record of achievement this year. Meetings 
with such groups as the Federal Publishers Committee and the Interagency 
Council on Printing and Publications Services, as well as the presentation of the 
well-regarded Printing Assistant Training Program, have been seized as 
opportunities to make customers aware of not only the services available 
through GPO but of the new attitude of cooperation as well. 

The Departmental Account Representative Division continued to expand its 
customer outreach efforts, participating in over 600 meetings with agency 
representatives and making more than 150 visits to customers' facilities to 
discuss their publications programs. An important innovation was the 
establishment of an Electronic Publishing Section, which will help customer 
agencies in the identification and fulfillment of their needs in that burgeoning 
area; staffing is expected to be complete by early 1988. 



Our Congressional Printing Management Division also made significant gains in 
expanding and improving services to our Capitol Hill customers. The Division 
coordinated the expansion of on-line or "dial-up" composition to eight 
Congressional offices in conjunction with the Graphic Systems Development 
Division. The number of incomplete Congressional Records produced dropped 
dramatically, and an overall improvement in turnaround time on Congressional 
work has met with great appreciation. 

Through the full cooperation and input from the Production Planning Division, 
the Production Estimating and Planning System (PEPS) was completely revised, 
resulting in a more sophisticated and accurate scheduling and estimating 
program. The commercial binding contract, which allows fuller utilization of 
GPO's press capacity, saw a 31 -percent decrease in jobs placed but a 5- 
percent increase in dollar volume. Savings accrued through suggested 
specification changes exceeded $120,000. 

The Division of Typography and Design continued to play a leadership role in 
Federal graphic design, experiencing significant increases in its most important 
and technical workload areas. Of particular interest was the design of the "We 
the People" Commemorative Calendar for the Bicentennial of the U.S. 
Constitution. The demand for audio-visual and videotape productions remained 
at a high level, and approval was obtained for installation of a permanent 
projection system in the Carl Hayden Room and for construction of a 
soundproof recording and editing studio. 

Office of the The role of the Office of the Inspector General (OIG) is to identify problems and 

Inspector General weaknesses and prevent fraud, waste, and abuse. During fiscal year 1987, the 

Office of Audits (OA) issued 40 reports which assisted GPO managers to re- 
duce costs, improve operations and strengthen internal controls against fraud, 
waste, and abuse. Implementation of OA recommendations resulted in 
management commitments to avoid costs or more effectively use resources in 
excess of $14.3 million. In addition, contractor claims audits resulted in claims 
reductions of approximately $2.4 million. 

The Office of Investigations (Ol) conducted a total of 50 investigations including 
37 full-scope criminal, 11 noncriminal, and 2 proactive investigations. The Ol 
issued 17 reports during the fiscal year. Due to fraud investigations of five New 
York City area contractors, the GPO was awarded $32,000 from fines and 
$565,300 in court-imposed restitution resulting from criminal prosecution. In 
addition to the fines and restitution, four company officials were convicted, four 
companies debarred and one company suspended. Civil litigation resulted in a 
monetary fine of $125,000 being awarded to GPO. 



Office of Public Affairs Among the more significant special activities supported by the Public Affairs 

staff during the fiscal year were those held in commemoration of the 
bicentennial of the Constitution of the United States. Input to the Bicentennial 
Commission itself, in the form of presentations at meetings and information as 
requested, was significant. The office also carried out the necessary provisions 
to allow 300 GPO employees to attend Citizenship Day activities on The Mall. 

A new function added to the Public Affairs responsibility during fiscal year 1987 
was the creation of a video coaching program for GPO executives. With the 
assistance of additional Public Affairs staff members, many of the Office's top 
officials received the training designed to enhance and improve their public 
communications skills. 

Another activity of the Public Affairs staff was an open house ceremony marking 
the unveiling of GPO's new passport and postal card production operations, 
which was attended by nearly 100 guests and representatives of the media. 

For the second year in a row, the Public Affairs office coordinated the 
distribution of the Budget of the United States, including making all provisions 
for GPO to host the accompanying press conference. Coordination activities for 
the 1988 International Government Printers' Conference were begun with a 
response card and conference prospectus mailed to each potential attendee 
during the fiscal year. Media coverage and awards recognition for the 
Adopt-A-Family aspect of the Community Outreach Program were highly 
favorable; GPO honored those from the Metropolitan Police Department who 
assisted in setting up the program. 



Operations 



Production Department 



The Assistant Public Printer (Operations and Procurement) and the Assistant 
Public Printer (Night Operations) are responsible for all pre-press, press, and 
binding operations at GPO's central office printing plant, as well as for the 
provision of quality control and related technical assistance to all GPO 
production and procurement operations. 

GPO's central office printing plant primarily serves the short-turnaround printing 
requirements of the U.S. Congress. It is located four blocks north of the U.S. 
Capitol and employs nearly 2,100 production personnel to provide a full line of 
printing, binding, and related products and services to the Federal community. 
Last year, GPO's central office in-plant operations produced a net income of 
$7.7 million. Major congressional products include the Congressional Record, 
bills, resolutions, amendments, reports, and hearings. 

The Electronic Photocomposition Division (EPD) continues to successfully meet 
the needs of Congress by accomplishing the typesetting of the Congressional 
Record, hearings, calendars, reports, and other documents required by the 
legislative process. The Federal Register remains constant as one of our major 
daily accomplishments; the number of pages of Register produced last year 
grew over previous years. The introduction of laser scanners as a method of 
data capture has enhanced our mode of operation, while improving the product 
quality. It is estimated that 50 percent of Federal Register manuscript is 
captured in this manner. 

Graphic Systems Development Division (GSDD) has been able to introduce new 
features into the production environment this year, including development of an 
automated change page feature integrated into the Automated Composition 
System. In the coming year, the Applications Section will be expanded into two 
sections: one to support the agencies producing work through the conventional 
in-house GPO system and the other to support the agencies producing work 
remotely, through either the dial-up system or the PC-based composition 
system. 



On-line or "Dial-up" 
Composition Service 



The Government Printing Office has developed an on-line, or "dial-up, " 
composition service which gives its customers access to the full power of 
GPO's composition system in their own offices. Using this system, keystrokes 
are captured by the customer on a microcomputer and transmitted to GPO 
over ordinary telephone lines. They are automatically composed, returned to 
the originator, and printed out in proof form on a non-impact printer. 

The system allows the user to maintain complete control over content, 
format, and data base maintenance, and speeds up the production cycle for 
initial proofs from a week or more to as little as an hour or two, depending on 
the size of the document. It provides the user with a logically-structured data 
base that can be used in many other applications, including indexing, 
extracting, and data retrieval, and it gives the user access to the full range of 
GPO's typefaces and formats. 

A demonstration room has been established to allow customers to see the 
system at work. New customers participating in the system telecommunicate 
data to this room and their work is processed through it for a period of time 
so that the Applications Specialists can provide full training and support. 

6 




Specific goals of the Press Division are to continue to attack the problems of 
waste reduction, overruns, underruns, shortages, stock control, plate remakes, 
and spoilages, in a combined effort to reduce operating costs resulting from 
these problems. The modernization and/or equipment overhaul in most sections 
of the division will continue in order to keep in step with the automation taking 
place throughout the industry. The Offset Press Section continues to operate its 
training program, earmarked to promote workers from within the GPO to 
journeyman pressmen, assistants, and feeder operators. In addition, the new 
postal card section is in full operation. 

The Binding Division's proposed 3-year modernization plan is now in the third 
year. Equipment replacement will continue until all outdated equipment has 
been replaced. Plans for workforce consolidation and some unit relocations are 
underway. Twenty-one bookbinder trainees entered our program during the 
past year. As of September 30, 1987, eight employees had successfully 
completed the training. Additional trainees will be assigned to the program as 
necessary, depending upon the division's staffing levels and workload 
requirements. 

Installation of the new automated United States Passport production line was 
completed in December 1986. Cover material and text were available in 
January 1987, and the equipment began to run on live work. A number of 
major problems were encountered and resolved with major production 
increases being made in July and August 1987. During the month of August, 
production exceeded 90,000 books per week. 



New Equipment for 

Producing Postal Cards 

and Passports 




The United States Passport is perhaps the most important high-quality 
security product of the Government Printing Office. The previous passport 
binding process was a highly labor-intensive operation; by contrast, GPO's 
new UP205 automated passport binding machine is designed to produce 
4,200 passports an hour with minimal manual intervention. This system, which 
gives GPO the capacity to produce 7 million passports each year, represents 
state-of-the-art electronic technology, offers a greater number of security 
features, and produces a higher quality product with lower production costs 
than previous methods. 

GPO also produces over 500 million postal cards each year for the U.S. 
Postal Service. GPO's new postal card press is a sheet-fed, five-color unit 
capable of printing 10,000 impressions, or 800,000 cards, per hour. All 
functions are controlled from a computer console; settings for each inking unit 
are made from this station and can be stored on a tape cassette for later 
recall. The 34-ton press is virtually vibration-free. 

Skids of printed sheets of postal cards are transported from the delivery 
unit to the new UST-12 cut and pack system. This completely automated, 
computer-controlled machine, installation of which was completed in 
December 1986, is capable of cutting and packing 6,000 sheets, or 480,000 
postal cards, every hour. Its ingenious design incorporates several 90 degree 
turns in the production cycle that were necessitated by the logistics of the 
building in which it was installed. 



Quality Control and 
Technical Department 



Engineering Service 



The workload in the Electronic Systems Development Division (ESDD) is 
expected to increase over the next several years. Unlike previous years, when 
most new equipment was installed within the GPO main plant, the trend for the 
next few years will be the installation of equipment serviced by GPO at various 
sites where data bases are captured. Non-impact printers and text editing 
systems will communicate with GPO for the purpose of transferring data files for 
composition and transmittal of copy files to these printers for proofing purposes. 
Corrected files will then be forwarded by the optimum method for final 
typesetting and printing. This expansion will require maintenance over a much 
wider area than now covered. 

The Quality Control and Technical Department develops, coordinates, and 
monitors quality systems for products produced and procured by GPO. These 
systems encompass specifications and standards, inspection and sampling, 
process controls, quality audits, mathematical studies, and analysis and 
management reports. 

During the past 12 months, Quality Control personnel tested 10,213 material 
samples against applicable specifications and responded to 8,242 requests to 
resolve technical and quality problems. The Department manufactured 260,845 
pounds of ink, produced 143,359 pounds of adhesive, handled 1,280 press 
rollers, recovered 7,946 troy ounces of silver, $38,202 worth of scrap film and 
recycled approximately $4,800 worth of waste ink. 

Of significance to the Federal community and the graphic arts industry at large, 
quality attribute development projects have achieved benchmark goals, and 
paper and material specifications have been developed in unprecedented 
numbers to support both Operation and Procurement needs and timetables. 

Engineering Service provided enhanced support to the agency in the traditional 
areas of building maintenance, building renovation, and equipment installation 
and servicing. For example, the Inspector General's office project on the fifth 
floor was completed. The cafeteria project, a major renovation to correct health 
code violations, and the adjacent seventh floor stairwell is nearing completion. 
Representatives of the JCP have visited the site to observe project progression. 

The Service installed a new cutting and packing machine in the Postal Card 
Section at a cost of $68,000. In addition to the above, a major renovation was 
also carried out in GPO Building 4, in preparation for the International 
Government Printers' Conference scheduled to take place in 1988. This project 
included repairs to the HVAC systems, constructing new offices, and remodel- 
ing of the lobby and security areas. 



8 



Procurement 



Printing Procurement 
Department 



The Assistant Public Printer (Operations and Procurement) is responsible for the 
purchasing of the Government's printing and binding requirements from 
commercial contractors and for the acquisition and management of all materials, 
supplies, paper, and equipment used by the Office. 

In fulfilling the information needs of the Federal establishment, GPO adheres to 
the Governmentwide policy of utilizing private sector contractors to the 
maximum possible extent to obtain products and services at the most 
competitive prices. Reflecting this policy, about 74 percent of GPOs total fiscal 
year 1987 printing and binding revenue came from work contracted to 
commercial printers. 

Printing Procurement continued to exemplify the GPO motto "demand-driven, 
service-oriented" by being responsive to both customer agencies and 
contractors. During fiscal year 1987, more impossible schedules were met than 
at any time in recent history. A pilot program was implemented to provide a Bid 
Information Center (BIC) that allows contractors to access our specifications via 
telecommunications using their personal computers. Enhancements to the 
Procurement Information Control System (PICS) has reduced inputting errors on 
print orders making the verifications of vouchers and payment to contractors 
faster. This allows GPO to take full advantage of payment discounts and 
reduces contractor complaints concerning slow payment. 



Computerized Bid 

Information Center for 

Contractors 




In an effort to transmit specification information to contractors more 
quickly, GPO's Printing Procurement Department has expanded its efforts to 
inform printing contractors of bidding opportunities by establishing an 
electronic bulletin board system. Called the Bid Information Center (BIC), this 
system marks the first electronic data link between GPO and its contractors. 

Using this pilot system, printing contractors can access specification 
information on any major jobs; small-purchase contracts, or those valued at 
under $10,000, will be included in the next phase of the system. BIC provides 
a brief synopsis of all formally advertised printing jobs available for bid as well 
as actual award information. Participants can have GPO's mainframe computer 
search its data base for jobs based on type of product, timeframe, GPO office 
(including the Central Office in Washington, DC, and all 19 regional and 
satellite offices), or any combination of these criteria. In addition to helping 
increase the volume of bidding, and, therefore, the amount of competition on 
GPO work, Public Printer Kennickell said of the system, "In the future, this link 
may open the door to electronic mailing of specifications, receipt of bids, 
exchange of compliance information, and many other exciting possibilities." 

BIC can be accessed using a wide variety of computer terminals, 
personal computers, and related software, keeping initial start-up costs low. 
Contractor response has been very positive; by the end of fiscal year 1987, 46 
contractors had subscribed to the system, which carries a quarterly 
participation fee of $100. The system also received favorable attention in the 
editor's column of the June 1987 issue of Printing Impressions magazine 
under the heading, "Your Computer as a Money Maker. " 



The increased workload and revenue in the Printing Procurement Department 
was a major improvement over 1986. An overall increase of 4 percent in 
workload generated $591 .8 million in revenue, an increase of 5 percent over 
fiscal year 1986. The increase was due mainly to the purchase of new tax 
forms mandated by the new tax laws that took effect in calendar year 1987. 

Computers continue to be a valuable operating tool for Printing Procurement. 
The main operating system, System 36, has been upgraded to increase 
memory and provide the capability to increase the hard disk storage. The 
system is currently used to develop specifications, abstract bids, type letters, 
create bid lists and many other functions, including the ability to separate 
reliable from unreliable contractors in the categories of responsibility and 
quality. 

Materials Management By continuing to implement the use of computers for recordkeeping, the 

Service operating divisions within Materials Management Service (MMS) are doing their 

job more efficiently and effectively than in the past, saving both time and 
money for the GPO. The purging of over 800 seldom-used items from the 
inventory records; the accuracy rate in locating paper in stores (over 99 percent 
accuracy rate); and significant dollar savings due to better accountability of 
paper assets are a few examples of efficiency directly attributed to the use of 
computers. One item of particular significance is an on-line automated Postal 
Card System developed by GPO to ensure that every post office in the United 
States has the proper supply of postal cards. This system was adopted as the 
official distribution system by the U.S. Postal Service. 



GPO's 1986 Revenue Dollar 



Where It Came From 

64.8<P/Purchased Printing 
.6C/Reimbursements 
2.6C/S & E Appropriation 
7.6C/Sales of Publications 
24.4<t/ln-House Printing 



Where It Went 

61.9<t/Purchased Printing 

1.1 ^/Capital Expenditures 

.6<t/Other 

2.3C/Sales of Publications 

3.5$/Rents, Comm., Utilities 

6.2$/Supplies & Materials 

23.4«/Labor 

1.0C/Surplus 





10 



Superintendent of Documents 



The Assistant Public Printer (Superintendent of Documents) is responsible for a 
broad range of Government information dissemination programs and services 
through the sale of Government publications, the compilation of catalogs and 
indexes of Government publications, the distribution of publications to 
depository libraries as required by law, and reimbursable mailings. Funding for 
these programs was provided through $73.4 million in publication sales, $19.9 
million from the Superintendent of Documents salaries and expenses 
appropriation, and $4.9 million from other Government agencies for 
reimbursable distribution services. 

Marketing In fiscal year 1987, the Office of Marketing further refined and expanded its ef- 

forts to improve public awareness of and access to Government information. 
During the fiscal year, 650,000 "U.S. Government Books" catalogs were pro- 
duced, an increase of 212,000 over the previous year. Much of the increase 
was due to the debut of new radio and television Public Service Announcements, 
which have been widely broadcast on all four TV networks and on hundreds of 
independent TV and radio stations. An arrangement with the Internal Revenue 
Service resulted in the distribution of 1 .2 million catalog request cards through 
IRS regional offices and a consequent distribution of approximately 140,000 
catalogs. The bimonthly New Books list was redesigned to enhance its value as 
a promotional tool. Numerous direct mail flyers produced by Marketing were 
mailed to hundreds of thousands of potential customers. 



Public Service 

Announcements on 

Television 





During fiscal year 1987, the Superintendent of Documents' Office of 
Marketing oversaw the production and distribution of television Public Service 
Announcements (PSAs) promoting GPO's free U.S. Government Books catalog 
of new and popular publications sold by the Superintendent of Documents. 
The new PSAs, the first ever produced commercially for GPO, have appeared 
on all four major television networks and on hundreds of individual stations 
across the nation. 

A contract for the PSAs was procured through Materials Management 
Service, and Marketing worked closely with the contractor to develop 
appropriate PSA concepts. After careful review, two concepts were selected: 
the humorous "Confused Agent, " an encounter between bumbling spies; and 
"Spokesman, " featuring Public Printer Kennickell. Scripts for 60-, 30-, 20-, and 
10-second spots were then developed by the contractor and edited by 
Marketing. 

The U.S. Capitol and portions of GPO's physical plant were used as 
"stage sets" for filming the PSAs. GPO's bindery, Main Bookstore, and Building 
4 warehouse area were all used as locations for the new spots. "Confused 
Agent" was completed during an all-night filming session in Building 4; the 
next day, the U.S. Capitol, the bindery, and the Main Bookstore served in turn 
as backdrops for the Public Printer's "Spokesman" spot. GPO employees in all 
areas were extremely supportive during the various phases of this unusual 
project. 

After completion and final editing, videocassettes of the PSAs were 
distributed to television networks and stations accompanied by a letter 
explaining their purpose and a copy of the U.S. Government Books catalog. 
Their broad acceptance by the media and the public is reflected by an 
increase of more than 200,000 catalogs distributed in fiscal year 1987. 



11 



Document Sales Service 




Marketing continued to develop sales promotions in cooperation with publishing 
agencies and maintained a close and ongoing liaison with agency publishers 
throughout the Federal Government. Bookstore marketing highlights included 
the production of flyers for distribution in Government bookstores, direct mail 
letters to specific audiences in selected bookstore cities, and the development 
of signage and display racks for promotional materials. 

Other marketing activities supporting the publications sales program included 
an extensive program of exhibits at conventions, meetings, and conferences, 
and the production of special bookmarks and notepads to mark the Bicenten- 
nial of the United States Constitution. 

Marketing efforts on behalf of the Federal Depository Library program included 
the development of a poster explaining the Superintendent of Documents 
classification system for publications, the production of a poster promoting map 
depository libraries in cooperation with the U.S. Geological Survey, and the cir- 
culation of four portable display units promoting the availability of Government 
information in libraries. Special exhibit collections of books related to the 
Bicentennial of the Constitution began circulating in the library community. 
Marketing also continued to distribute large quantities of Depository Library 
brochures and bookmarks to depository libraries. 

Fiscal year 1987 was the best year for the Sales Program since it was placed in 
the position of being self-sustaining by the Congress in 1978. Revenue was up 
substantially over fiscal year 1986. Publication orders were up as well as 
subscription service line items ordered. The positive financial position is allowing 
the reduction in prices of approximately 80 percent of our subscription services. 
Publication prices are expected to remain stable for the next 2 years, assuming 
the number of copies sold remains around the 26 million level as it has for the 
past 2 years and costs can be kept in line. Postage, however, is the biggest 
unknown in this scenario. 

Order processing times at the Central Office were generally well within industry 
standards and within Office goals. At the last order processing time study, 
single line item "express processing" type orders were being placed in the mail 
stream in 6.2 working days. Orders for more than one line item where the 
books were in stock and the money was correct or a deposit account or credit 
card was used, were going in the mail in 9.4 working days. Subscription orders 
were generally being entered into the Mail List System in an average of 10 
working days. Documents Sales Service is now developing its third generation 
of automated systems to improve timeliness further and add new controls and 
reference capabilities. 

The Bookstore Program has become totally self-sustaining and plans are being 
made to expand the bookstore program substantially over the next eight years. 
Birmingham and Farragut West stores were relocated to new sites and plans 
have begun to relocate the Houston and Pittsburgh stores. In addition, work 
has begun to open new stores in Portland, Indianapolis and Minneapolis in 
fiscal year 1988. 



12 



Library Programs Service 



In response to the Resolution of the Joint Committee on Printing, the sale of 
publications in electronic format was begun by the Document Sales Service, 
Office of the Superintendent of Documents. A letter was sent to former and 
prospective customers on July 1 and a news release was prepared which 
announced the availability of both individual publications and subscriptions on 
magnetic tape and provided general pricing information. Initial subscription 
sales have been of the Daily Bills, Congressional Record, and the Federal 
Register. Single tape sales have been made of publications such as various 
titles of the Code of Federal Regulations, Public Laws, the Government Manual, 
Congressional Directory, Statistical Abstract, and issues of the Federal Register. 

The Internal Revenue Service project was a success; about 70,000 orders from 
tax practitioners were processed, yielding revenue of $2.8 million against 
expenses of $1.5 million. The program has been expanded for tax year 1987. 

The Library Programs Service commenced planning for the dissemination of 
Government publications to depository libraries in electronic formats. All hard- 
copy Monthly Catalog issues, including the 1987 Periodicals Supplement and 
various indexes, were produced and distributed on or ahead of schedule 
throughout fiscal year 1987. Fifteen percent fewer publication copies were 
distributed to depository libraries during fiscal year 1987, as compared with the 
previous fiscal year. This was largely due to year-long problems with the 
microfiche contractor, and, to a lesser extent, due to a dropoff in the number of 
items received for distribution. 



GPO's 1987 Revenue Dollar 




Where It Came From 

64.8<f/Purchased Printing 
.6C/Reimbursements 
2.2C/S & E Appropriation 
8.40/Sales of Publications 
24.0<P/ln-House Printing 




Where It Went 

61.5C/Purchased Printing 
.8C/Capital Expenditures 
1 .OC/Other 

2.3C/Sales of Publications 
3.3C/Rents, Comm., Utilities 
6.1C/Supplies & Materials 
22.4«/Labor 
2.6C/Surplus 



13 



Administration 



Financial Management 
Service 



Information Resources 
Management 



The Assistant Public Printer (Administration) is responsible for a full range of 
information management, financial management, security, and support services 
which provide complete administrative assistance to the operations of the GPO. 

The Financial Management Service (FMS) provided improved services at 
reduced costs through increased automation, improved productivity, and by 
focusing on management needs for improved financial information. 

To assure that GPO rates are properly recovering costs and reflect the impact 
of new processes and equipment, analyses were conducted and new scales of 
prices were developed for the Central Office and the Rapid Response Center. 
New rates were established for postal cards produced on a new five-color press 
and processed on a new cut-and-pack system; for the new Passport Production 
Line, and the selling of magnetic tapes to the public. A publication, "Simplified 
Scale for Printing and Binding Books and Pamphlets," was updated and 
provided to agencies by the Customer Service Staff to provide our customers 
with a basis for estimating the cost of printing. Special studies of operating 
costs were conducted, such as an analysis of work flow and processes used for 
distribution of publications to depository libraries. 

Cash management was substantially improved in 1987, through improved 
automation and closer monitoring of balances and trends. Management reports 
were developed on micro-computers. The automatic billing system, which was 
implemented in fiscal year 1986, processed $222 million in billings in fiscal year 
1987, an increase of 68 percent over fiscal year 1986. FMS streamlined 
Department of the Army billings by transmitting them on computer tape in lieu 
of paper invoices. Billing procedures were revised to implement the change in 
International Exchange Program funding effective in fiscal year 1987, whereby 
costs are charged to the Salaries and Expenses Appropriation rather than the 
originating agency. 

The Office of Information Resources Management (OIRM) provides a full-range 
of automated computing services for the U.S. Government Printing Office. This 
includes maintenance of a GPO-Wide Data Automation Plan; the design, 
development or procurement of approved systems and programs; and, the 
procurement and maintenance of equipment facilities for the efficient operation 
of these systems. 

Fiscal year 1987 was a year of transition and accomplishment for the OIRM. A 
GPO-Wide Data Automation Plan was prepared, providing a strategy for 
meeting the GPOs future computing services requirements and a preliminary 
working calendar for implementing these requirements. With the re- 
establishment of the GPO ADP Steering Committee, and the Data Automation 
Plan and its continuing planning process, a foundation has been built for the 
efficient planning, selection, and implementation of information resources at the 
GPO. 

Significant efforts were initiated during this fiscal year to procure and install a 
Congressional Record Full-Text Search and Retrieval System at the GPO. 



14 



Electronic Access 

for the 

Congressional Record 




In January of 1986, GPO was directed by the Joint Committee on Printing 
to develop a system for electronic access and retrieval of the Congressional 
Record. After conferring with industry experts, a request for proposal was 
issued in November 1986 stating the specific requirements for the system; a 
contract was awarded in June to Data Retrieval Corporation for the necessary 
software, which was delivered on September 28, 1987. 

GPO's Office of Information Resources Management (OIRM) formulated 
the specific requirements to be met by the contractor. For example, the data 
base will be cumulative for each Congress; the Record is printed daily when 
Congress is in session and averages about 31, 168 pages per year. In 
addition, the entire data base, including Senate and House Proceedings, 
Extensions of Remarks, the Daily Digest, and the Congressional Record Index 
will be in an on-line mode for efficient and effective retrieval. 

"User-friendliness" is the key to many of the requirements set out by 
OIRM. The system will provide for searching by key word or phrase, by a 
cross reference Thesaurus, and by alphabetic "browsing. " The user will also 
be able to page through the Record and Daily Digest in the exact paging 
order as the printed version; cumulative daily indexing will also be available. 

In keeping with GPO's philosophy on full-text data base development, the 
system will facilitate the publishing through GPO of secondary printed 
products based on the individual needs of Members of Congress, Committees, 
and other Congressional offices. The system will also allow for the 
incorporation of Congressional Record text excerpts by authorized 
Congressional offices into secondary data bases. 



Security and Support 
Services 



Enhancements were also made to the Executive Information System as well as 
to other major administrative ADP systems. As in the past, major OIRM 
resources were applied to Public Documents programs. The first phase of the 
IRS Order Fulfillment System was implemented. This system handles the data 
entry and order processing of IRS publications for tax practitioners. An 
estimated 85,000 orders are anticipated for this tax year. 

The Production and Procurement areas were provided with new systems and 
enhancements to better enable them to meet the mission requirements of the 
Federal Printing Program. The new online Automated Postal Card System was 
put into production in July, replacing a 12-year old batch system. This system 
keeps track of postal card requisitions for post offices throughout the United 
States, and of consolidated shipments of postal cards based on destination 
points. 

Fiscal year 1987 was also a productive year for Security and Support Services. 
Physical Security responsibilities increased as a result of new passport and 
postal card production security requirements. The procurement of new security 
equipment and the introduction of new physical security measures contributed 
to Security Service's ability to meet the challenges of an increased terrorist 
threat. Support Services continued to automate the administrative functions of 
the Office as well as to make economic changes to better serve the information 
and support needs of GPO management and employees. 



15 



Human Resources 



The Assistant Public Printer (Human Resources) is responsible for all personnel, 
labor-management relations, equal employment opportunity, and employee 
safety matters at GPO. This area includes the Policy and Evaluation Staff, 
Personnel Service, Labor and Employee Relations Service, Equal Employment 
Opportunity Service, and Occupational Health and Environmental Services. 

Throughout fiscal year 1987, the Labor Relations Branch, Labor and Employee 
Relations Service, conducted negotiations with the Joint Council of Unions 
on a new master agreement covering 13 bargaining units. The parties worked 
on new policies and procedures involving leave including a new type of leave 
to be called parental leave. New policies were also agreed upon in the areas of 
performance appraisal, corrective actions and union representation. 

In fiscal year 1987, there was a revived interest in apprentice training programs 
throughout the GPO. The decision was made to hire apprentices in the 
occupations of carpenter, electrician, machinist, painter, pipefitter, offset press 
feeder, bookbinder, and stationary engineer. In addition, a team of GPO 
employees visited the New Zealand Government Printing Office to study their 
Modular Apprentice Training program. Personnel is presently evaluating the 
program for application in the GPO. 

Extensive recruitment efforts were undertaken in a number of areas to fill certain 
hard-to-fill vacancies. Paid advertisements were used and recruitment brochures 
were developed, printed and distributed. A major effort also went into providing 
information to employees concerning the new Federal Employees' Retirement 
System (FERS). 

A new automated classification system has been developed and is presently 
being tested. Text was prepared and put into a data base for two occupational 
series-the GG-525 Accounting Technician series and GG-1102 Contracting 
series. Modifications and enhancements to the system are on-going. 

Equal Employment Opportunity Service staff members participated in on-site 
program reviews at GPO installations in Dallas, Denver, Pueblo, Atlanta, Boston, 
New York, and Philadelphia. The reviews included: assessment of 
implementation of EEO procedures, deficiencies, recommending corrective 
measures and providing technical assistance. 

The GPO Affirmative Action Plan and the Accomplishment Report of Affirmative 
Action for Minorities and Women covering fiscal year 1987 were submitted to 
the Equal Employment Opportunity Commission during the first quarter of the 
fiscal year. 

The Employee and Organizational Assistance Branch, Occupational Health and 
Environmental Services, conducted a number of surveys in an effort to improve 
the health and welfare of the workforce. Surveys were conducted of the 
workforce to solicit opinions regarding a potential smoking policy in the Central 
Office, and the quality of health services being made available to employees in 
the field. 

The Safety Branch initiated a new safety and health inspection data base during 
the fourth quarter of fiscal year 1987 and provided oversight for the installation 
of the new fire alarm, detection and communication system. 

16 



Financial Highlights 



Title 44 of the U.S. Code requires the U.S. Government Printing Office (GPO) to 
fulfill the printing and binding needs of the Federal Government and to 
distribute Government publications to the general public. GPO's printing and 
binding operations are accomplished through a central printing plant located at 
Washington, DC; 6 smaller regional printing plants; and the procurement of 
printing and binding through the central office, 14 regional offices, and 6 
smaller satellite offices. Superintendent of Documents operations include the 
sale of publications, distribution to depository libraries, reimbursable and 
statutory distribution, and the cataloging and indexing of all Government 
documents. 

All GPO activities are financed through a revolving fund, which is reimbursed 
by payments from customer agencies, sales made to the general public, and 
transfers from various appropriations. GPO's consolidated financial statements 
also include the activities and fund balances of the Congressional Printing and 
Binding and the Printing and Binding appropriations. These annual 
appropriations are used to reimburse GPO for costs incurred in performing 
printing and binding for the Congress and for the printing, binding, and 
distribution of Government publications authorized to be distributed without 
charge to recipients designated by law. Reimbursements from the 
appropriations are included in GPO's total printing and binding revenue. 

Results of GPO Operations 

GPO achieved a consolidated net income for fiscal year 1987 of $22.9 million, 
compared to $8.8 million for fiscal year 1986. Total consolidated revenue 
increased by $45 million in 1987 to $871 million, while total expenses also 
increased by $31 million to a balance of $848 million. The increase in expenses 
was mainly generated by the increased dollar volume in procured printing. For 
the sixth consecutive year, GPO's Sales of Publications Program continued to 
produce a healthy net income, more than doubling last year's $5.5 million 
figure. 

Printing and Binding Operations 

In fiscal year 1987 GPO's in-house and commercially procured products 
generated a revenue of $804.5 million, which is 89 percent of total GPO 
revenue. Revenue from commercially procured printing was $592 million, 
representing about 74 percent of the total dollar volume for printing and binding 
work. 

In-House Printing Operations 

GPO's in-house printing operations earned $6.7 million in net income this year 
compared to a net income of only $179,000 for 1986. Total revenue was 
$212.7 million compared to $205.5 million last year, while expenses amounted 
to $206 million against $205.3 million in 1986. 

Central Office and Regional Printing Procurement Operations 

GPO's printing procurement operations experienced solid gains in procured 
printing during 1987. Total revenue was $591.8 million, an increase of $28.9 
million or 5 percent over 1986, resulting in a net income of $4.8 million. 

17 



Financial Statements 
Consolidated Balance Sheet 

As of September 30, 1987, and 1986 (Notes 1 and 2) (in thousands of dollars) 
Assets 1987 1986 



Current Assets: 






Cash 






On-hand and in-transit 


$1,860 


$1,370 


Revolving Fund 


94,564 


100,336 


Appropriations 


46,271 


49,539 


Accounts receivable (Note 3) 


236,186 


202,593 


Inventories: 






Publications for sale, net (Note 4) 


12,214 


1 1 ,664 


Paper 


12,415 


12,590 


Materials and supplies 


8,430 


8,314 



Total Current Assets $411,940 $386,406 



Property, Plant, and Equipment (Note 5): 

Land and buildings 

Equipment and building improvements 

Less: accumulated depreciation 
Net Property, Plant, and Equipment 



18,648 


18,648 


107,761 


101,965 


126,409 


120,613 


70,348 


65,174 


56,061 


55,439 



Total Assets $468,001 $441,845 



The accompanying notes are an integral part of these financial statements. 

18 



$87,697 


$80,084 


35,115 


35,492 


10,038 


9,370 


821 


771 


$133,671 


$125,717 



Liabilities and Investment 1987 1986 



Current Liabilities: 

Accounts payable (Note 6) 
Advances from customers (Note 7) 
Accrued salaries, wages, benefits and other 

withholdings 
State and local payroll taxes 

Total Current Liabilities 

Other Liabilities: 

Accrued annual leave 9,004 8,659 

Excess receipts from sales of 

publications, due U.S. Treasury 

(Note 8) 11,424 5,516 

Total Other Liabilities $20,428 $14,175 

Total Liabilities $154,099 $139,892 

Investment of U.S. Government: 

Appropriations: 
Unliquidated obligations 45,525 48,884 

Revolving Fund: 

Contributed capital (Note 9) 
Retained earnings (Note 10) 
Reserved for intra-office funding (Note 8) 

Total Revolving Fund 

Total Investment 

Total Liabilities and Investment 



110,413 


110,679 


152,464 


141,012 


5,500 


1,378 


$268,377 


$253,069 


$313,902 


$301,953 


$468,001 


$441,845 



19 



Consolidated Statement of Revenue and Expenses 
by Function and Retained Earnings 

Fiscal Years 1987 and 1986 (Notes 1 and 2) (in thousands of dollars) 





Printing 


and Binding (Note 


11) 




In-House 


Purchased 






Printing 


Printing 


Total 


Revenue: 








Printing and Binding 


$212,718 


$591,804 


$804,522 


Sales of Publications 








Appropriations 








Reimbursements 


— 


_ 


— 


Total Revenue 


$212,718 


$591,804 


$804,522 


Expenses: 








Personnel compensation and 








benefits 


$137,888 


$26,725 


$164,613 


Travel and transportation 


430 


1,624 


2,054 


Rents, communications and 








utilities 


10,826 


2,739 


13,565 


Printing and reproduction 




552,657 


552,657 


Other services 


2,511 


1,246 


3,757 


Supplies and materials 


49,307 


1,387 


50,694 


Depreciation 


5,060 


670 


5,730 


Publications sold 








Unsaleable publications 


— 


— 


_ 


Total Expenses 


$206,022 


$587,048 


$793,070 


Net Income 


$6,696 


$4,756 


$11,452 



Retained Earnings, Beginning of Fiscal Year 

Retained earnings before payable to U.S. Treasury 

Less: 
Excess receipts from current sales of publications, due U.S.Treasury 

Retained Earnings, End of Fiscal Year 



The accompanying notes are an integral part of these financial statements. 

20 



Information Dissemination 


Eliminations 


Total ( 




Sales of 
Publi- 


Salaries 

and 
Expenses 


Total 


3PO 


cations 


1987 


1986 


$73,448 


$19,942 
4,931 


$73,448 

19,942 

4,931 


($31,825) 
(372) 


$772,697 

73,448 

19,570 

4,931 


$736,637 

62,850 

21,505 

4,806 



$73,448 $24,873 $98,321 



($32,197) $870,646 $825,798 



$23,943 


$9,529 


$33,472 


1,002 


250 


1,252 


11,698 


3,819 


15,517 


1,407 


9,348 


10,755 


1,815 


807 


2,622 


1,959 


876 


2,835 


122 


244 


366 


17,343 


— 


17,343 


2,751 


— 


2,751 



$11,408 



$62,040 $24,873 $86,913 



$11,408 



($2,807) 


$195,278 


$194,261 


— 


3,306 


2,901 


(597) 


28,485 


28,597 


(28,098) 


535,314 


511,132 


(478) 


5,901 


4,276 


(217) 


53,312 


51,087 


— 


6,096 


6,013 


— 


17,343 


15,899 


— 


2,751 


2,786 



$22,860 



($32,197) $847,786 $816,952 



$8,846 



$141,012 $137,682 



$163,872 $146,528 



1 1 ,408 



5,516 



$152,464 $141,012 



21 



Consolidated Statement of 
Changes in Financial Position 

Fiscal Years Ended September 30, 1987, and 1986 (Notes 1 and 2) 
(in thousands of dollars) 

1987 1986 

Funds Provided: 

Net Income 

Add expenses not requiring working capital: 
Depreciation 

Total Funds Provided by Operations 
Book value of retired assets 
Appropriations 
Reimbursements 
Increase in accrued annual leave 



$22,860 


$8,846 


6,096 


6,013 


28,956 


14,859 


46 


29 


95,085 


103,941 


4,931 


4,806 


345 


306 



Changes in Working Capital 



Current Assets: 

Cash: 

On-hand and in-transit 

Revolving Fund 

Appropriations 
Accounts receivable 
Publications for sale 
Paper 
Materials and supplies 

Current Liabilities: 

Accounts payable 

Advances from customers 

Accrued salaries, wages, benefits and other 

withholdings 
State and local payroll taxes 



Total Funds Provided $129,363 $123,941 



Funds Applied: 

Purchase of fixed assets 7,030 8,977 

Funds returned to U.S. Treasury: 

From appropriations 8,758 23,546 

Public Law 99-177 reductions - 4,469 

Printing and Binding 71,110 68,025 

Obligated appropriations (Note 12) 24,885 26,659 

Total Funds Applied $111,783 $131,676 

Increase (Decrease) in Working Capital $17,580 ($7,735) 



$490 


$110 


(5,772) 


42,701 


(3,268) 


(23,318) 


33,593 


(27,176) 


550 


666 


(175) 


465 


116 


357 


(7,613) 


(1,513) 


377 


851 


(668) 


(876) 


(50) 


(2) 



Increase (Decrease) in Working Capital $17,580 ($7,735) 



The accompanying notes are an integral part of these financial statements. 

22 



Status of Appropriated Funds 

Fiscal Years Ended September 30, 1987, and 1986 (Notes 1 and 2) 
(in thousands of dollars) 



Congressional 
Printing 


Printing 
and 


Salaries 
and 


Total 
Appropriated Funds 


and Binding 


Binding 


Expenses 


1987 


1986 


Status of 












Appropriations, 












Beginning of 












Fiscal Year 


$31 ,454 


$2,428 


$15,657 


$49,539 


$72,857 


Funds Provided: 












initial Appropriations 


62,000 


10,700 


22,385 


95,085 


103,941 


Intra-Office Funding 


— 


— 


1,378 


1,378 


3,000 


Reimbursements 


— 


— 


4,931 


4,931 


4,806 


Total Funds Provided 


$93,454 


$13,128 


$44,351 


$150,993 


$184,604 


Funds Applied: 












Printing and Binding 


62,445 


8,620 


— 


71,065 


78,058 


Obligated 












appropriations 


— 


— 


24,839 


24,839 


28,992 


Funds returned to U.S. 












Treasury 


4,708 


142 


3,908 


8,758 


23,546 


Public Law 99-177 












reductions 


- 


- 


- 


- 


4,469 


Total Funds Applied 


$67,153 


$8,762 


$28,747 


$104,662 


$135,065 


Status of 












Appropriations, 












End of 












Fiscal Year 


$26,301 


$4,366 


$15,604 


$46,271 


$49,539 















The accompanying notes are an integral part of these financial statements. 

23 



Notes to Financial Statements 



* 



(1) Organization 

The Government Printing Office provides printing, binding, and distribution 
services to the Congress and Federal agencies and distributes publications to 
the public. Title 44 of the U.S. Code established the Government Printing Office 
Revolving Fund to finance these operations. The Revolving Fund is reimbursed 
by payments from agencies, receipts from sales of publications, and by 
transfers from the Congressional Printing and Binding and Printing and Binding 
Appropriations. 

The Salaries and Expenses Appropriation is appropriated for necessary 
expenses incurred by the Superintendent of Documents' operations for 
depository library and other by-law distribution of publications, and for the 
cataloging and indexing of Government publications. 

(2) Summary of Significant Accounting Policies 

Principles of Consolidation -The consolidated financial statements 
include all funds of the Government Printing Office. Inter-fund and inter- 
operational transactions and balances have been eliminated. 

Basis of Accounting -Assets, liabilities, revenue, and expenses are 
recognized on the accrual basis of accounting following generally accepted 
accounting principles and the associated principles of fund accounting. 

Expense Allocations -General and administrative expenses have been 
distributed among the various expense categories. To the extent practicable, 
general and administrative expenses were allocated to the various programs 
based on the estimated level of effort associated with each program. 

Revenue Recognition -Printing and binding revenue is recognized on the 
basis of work performed by the Government Printing Office due to the fact that 
all printing and binding work is required by law to be reimbursed on the basis 
of services rendered. Revenue on work procured from commercial printers is 
recognized on constructive date of shipment or actual date of payment, 
whichever occurs first. Revenue for distributing and selling publications to the 
public is recognized when publications have been shipped, or when services 
have been performed. GPO guarantees prices on a large volume of in-house 
work. The estimated losses, if any, on work substantially completed during the 
fiscal year have been recorded in the appropriate period. 

Inventories- Publications for sale are valued using the weighted-average 
cost method, while paper, materials and supplies are valued using the moving- 
average cost method. 

Property, Plant and Equipment- Property, plant, and equipment are 
carried at cost. Expenditures which substantially increase the useful life of the 
assets are capitalized. Maintenance and repairs are expensed as incurred. 
Depreciation is computed using the straight-line method with estimated useful 
lives ranging from 42 to 50 years for buildings and from 3 to 30 years for 
machinery and equipment and building improvements. Depreciation expense 
for machinery and equipment and building improvements is recovered from 
billings to customer agencies. Buildings and structures have been paid for from 
Legislative appropriations. Accordingly, depreciation is recorded but not 
reimbursed on these items. 

* As of September 30, 1987, and September 30, 1986 

24 



Intra-Office Funding -Salaries and Expenses Appropriation was funded in 
part by excess receipts derived from sales of publications. In Fiscal Year 1987, 
this type of funding provided $1,378,000 to the Appropriation. For Fiscal Year 
1988, the Legislative Branch Appropriation Bill (H.R. 2714), if approved, will 
provide the Salaries and Expenses Appropriation $5,500,000 from the sales of 
publications. 

Balanced Budget and Emergency Deficit Control Act of 1985, Public 
Law 99-1 77- As a result of this legislation, funds were sequestered during 
Fiscal Year 1986. For ease of presentation, reductions are referred to in the 
financial statements, accompanying notes, and schedules as Public Law 99-177 
Reductions. 

Pensions-Government Printing Office employees are covered by the Civil 
Service Retirement and Disability Fund, the Federal Old-Age, Survivor, and 
Disability Insurance Fund or the Federal Employee Retirement Fund. 
Consequently, the GPO is responsible for withholding the required percentage 
from each employee's salary and for contributing to the funds. The GPO's 
contributions were $11,616,000 and $11,332,000 in 1987 and 1986, 
respectively. 

Contingencies-GPO is involved in three major lawsuits, pending in 
Claims Court at report date. The lawsuits stem from the termination of the 
contract for Program 600-S. Plaintiffs have claimed approximately $73 million 
plus attorney's fees and other associated costs. However, except in very narrow 
circumstances, once such claims enter into litigation, at either the District Court 
or Claims Court level, ultimate payment usually is disbursed from the judgment 
fund administered by the General Accounting Office. 

(3) Accounts Receivable 

Accounts receivable as of September 30, 1987, and 1986, is comprised of 
the following: 



Accounts Receivable 



1987 



1986 



Billed to Government Agencies 
Unbilled completed work 
Unbilled work in process 
Other 



$52,256,000 

132,404,000 

50,166,000 

1,360,000 



$40,984,000 

118,585,000 

42,082,000 

942,000 



Totals 



$236,186,000 



$202,593,000 



Other accounts receivable for 1987 include non-trade promissory notes 
from the Refectory Cafe Limited of $151,000. At the end of the prior year, this 
note was $165,000. 



25 



(4) Publications for Sale, Net 

Publications for sale, net as of September 30, 1987, and 1986, are 
comprised of the following: 



1987 1986 



Publications for sale $15,614,000 $14,759,000 

Allowance for unsaleable publications (3,400,000) (3,095,000) 



Publications for sale, net $12,214,000 $11,664,000 



(5) Property, Plant, and Equipment 

Property, plant, and equipment as of September 30, 1987, and 1986, is 
comprised of the following: 

1987 1986 





Acquisition 


Accumulated 


Net 


Net 




Value 


Depreciation 


Book Value 


Book Value 


Land 


$9,992,000 




$9,992,000 


$9,992,000 


Buildings 


8,656,000 


$8,472,000 


184,000 


283,000 


Building 










improvements 


31,292,000 


14,946,000 


16,346,000 


16,827,000 


Leasehold 










improvements 


759,000 


149,000 


610,000 


507,000 


Plant machinery 










and equipment 


66,179,000 


41,303,000 


24,876,000 


24,308,000 


Office machinery 










and equipment 


6,525,000 


4,396,000 


2,129,000 


3,017,000 


Computer software 


309,000 


261,000 


48,000 


86,000 


Furniture and 










fixtures 


256,000 


187,000 


69,000 


65,000 


Motor vehicles 


707,000 


634,000 


73,000 


120,000 


Capital 










improvements in 










progress 


1,734,000 
$126,409,000 


- 


1,734,000 
$56,061,000 


234,000 


Totals 


$70,348,000 


$55,439,000 



26 



(6) Accounts Payable 

Accounts payable as of September 30, 1987, and 1986, is comprised of 
the following: 

Accounts Payable 1987 1986 

Commercial printing $75,007,000 $69,233,000 

Government 7,312,000 6,490,000 

Other 5,378,000 4,361,000 

Totals $87,697,000 $80,084,000 



(7) Advances from Customers 

Advances from customers as of September 30, 1987, and 1986, are 
comprised of the following: 

Advances 1987 1986 

Advanced billings to customer agencies 

for printing services $5,501,000 $8,125,000 

Customer deposits for publications 8,148,000 7,606,000 
Subscriptions, including prepaid subscription 

service and unearned subscription revenue 19,263,000 17,985,000 

Undelivered publication orders 2,203,000 1,776,000 

Totals $35,115,000 $35,492,000 



27 



(8) Amount Due U.S. Treasury 

Title 44 requires the Government Printing Office to deposit in the United 
States Treasury excess receipts from sales of publications. The amount due the 
U.S. Treasury through September 30, 1987, was determined as follows: 

Amount due U.S. Treasury, September 30, 

1986 $5,516,000 

Amount requested to be used to finance 

Fiscal Year 1988 Salaries and Expenses 

Appropriation from intra-office funding (5,500,000) 

Fiscal Year 1987 Excess Receipts 11,408,000 

Amount Due U.S. Treasury, 

September 30, 1 987 $11 ,424,000 



(9) Contributed Capital 

Contributed capital as of September 30, 1987, and 1986, was derived 
from the following: 



Contributed Capital 1987 1986 

Beginning net worth when the Revolving 

Fund was established $33,807,000 $33,807,000 

Book value of contributed buildings 

and land 613,000 712,000 

Appropriations for improvements to air 

conditioning and electrical systems 12,900,000 12,900,000 

Appropriations for working capital and site 

acquisition 62,600,000 62,600,000 

Donated equipment 493,000 660,000 



Totals $110,413,000 $110,679,000 



U. S. Government Printing Office : 1988 O — 206-503 : QL 2 

28 



(10) Retained Earnings 

In Fiscal Year 1986, the GPO contracted to purchase a parcel of land 
adjoining the Central Office complex. The amount of retained earnings still 
restricted by this purchase commitment is approximately $9,500,000. 



(11) Printing and Binding 

In-house printing and binding and purchased printing net income or loss for 
central and regional operations for September 30, 1987, and 1986, are as follows: 



1987 



1986 



In-house printing 
Central 
Regional 

Subtotal 



$7,668,000 
(973,000) 

6,695,000 



$900,000 
(721,000) 



179,000 



Purchased printing 
Central 
Regional 

Subtotal 

Totals 



4,824,000 
(67,000) 



4,757,000 
$11,452,000 



2,372,000 
779,000 

3,151,000 

$3,330,000 



(12) Expended Appropriations 

At September 30, 1 987, and 1 986, the expended appropriation for current and 
prior year's appropriations are as follows: 



Programs 



1987 



1986 



Depository library distribution 
Cataloging and indexing 
By-law distribution 
International exchange 
Distribution for other agencies 

Totals 



$15,897,000 

2,357,000 

977,000 

295,000 

5,359,000 

$24,885,000 



$18,043,000 
2,330,000 
1,105,000 

5,181,000 
$26,659,000 



?88 



'VERNMENT PRINTING OFFICE ANNUAL REPORT 1988 







GPO Management 



The Joint Committee on Printing 



Frank Annunzio 
Representative from Illinois 
Chairman 

Joseph M. Gaydos 
Representative from Pennsylvania 

Leon E. Panetta 
Representative from California 

Robert E. Badham 
Representative from California 

Pat Roberts 
Representative from Kansas 



Wendell H. Ford 
Senator from Kentucky 
Vice Chairman 

Dennis DeConcini 
Senator from Arizona 

Albert Gore, Jr. 
Senator from Tennessee 

Ted Stevens 
Senator from Alaska 

Mark 0. Hatfield 
Senator from Oregon 



Richard Oleszewski 
Staff Director 



GPO Senior Staff 



Ralph E. Kennickell, Jr. 

Public Printer of the United States 

S. Bruce Scaggs 
Assistant Public Printer 
(Operations and Procurement) 

Burkey W. Boggs 
Assistant Public Printer 
(Night Operations) 

M. Joseph Cannon 
Assistant Public Printer 
(Financial Policy and Planning) 

Grant G. Moy, Jr. 
General Counsel 



Joseph E. Jenifer 
Deputy Public Printer 

Donald E. Fossedal 
Assistant Public Printer 
(Superintendent of Documents) 

James N. Joyner 
Assistant Public Printer 
(Administration and Resources 
Management) 

Joyce Blalock 
Inspector General 

Stuart M. Foss 
Executive Advisor 



Table of Contents 



Public Printer's Message 1 

Deputy Public Printer's Message 3 

Operations 5 

Procurement 10 

Superintendent of Documents 12 

Administration and Resources Management 14 

Financial Policy and Planning 18 

Financial Highlights 20 

Financial Statements 22 



Public Printer's Message 




Ralph E. Kennickell, Jr. 
Public Printer 



I reflect with pride on the past year at the Government Printing Office, a year in 
which we strengthened our role as the "Nation's Printer." We continued to better 
our efforts in providing personal, individualized service to Congress and our 
customer agencies, and we became a leader and innovator in the integration of 
state-of-the-art electronic publishing technologies. 

As the watchword for today's Federal Government continues to be economy, it 
is imperative that for every Government dollar spent a product or service of 
equal value is received. Budgetary constraints have substantially reduced the 
amount of money our customers can allocate for printing. Therefore, we work 
with our customers to evaluate their needs, render advice, suggest 
modifications, and monitor in-house and contractor performance to ensure 
maximum return on their printing dollars. Through these cost-saving efforts, the 
continuing modernization of our printing equipment, the integration of new 
technologies, and our employees striving to work smarter and harder, GPO 
continues to end each year on a firm financial basis. Fiscal year 1988 showed a 
consolidated net income of $15.7 million, including $7.6 million from in-house 
printing operations, $4.3 million from procured printing operations, and $3.8 
million from sales of Government publications. 

Fiscal year 1988 was also a year in which we reached out to diverse segments 
involved in the "information industry." In June, GPO hosted the International 
Government Printers' Conference. Fifty-two government printers from around the 
world met to exchange their opinions and share information and knowledge of 
new technology so vital to this industry. The largest gathering ever in 
attendance, this highly distinctive group took the historic step of formalizing 
themselves into the International Government Printers' Association, pledging in 
their charter's preamble to "provide a forum for the exchange of information, 
advice, and assistance in the resolution of problems common to the 
government printing industry, and to seek the improvement of government 
printing operations through the application of new technology, methods, and 
techniques." 

During the last week of September, GPO hosted the 12th Annual National State 
Printing Association Conference. The association was formed in 1977 to provide 
a forum through which State printing officials could share their knowledge and 
expertise with peers and provide assistance to one another in solving problems 
relevant to the management of State printing operations. With 65 printers, 
representing nearly every State, the conference with its theme, "Technology and 
the Future of State Government Printing," brought together the largest gathering 
ever for the association. 

Earlier in the year, GPO launched a leadership effort in the war against illiteracy 
in our Nation with its cosponsorship of a Symposium for the Graphic Arts 
Industry, "The Image of Print Media and the Problem of Functional Illiteracy in 
the United States." Coordinated by our Office of Innovation and Development 
and jointly conducted by the Academic Advisory Council of the Government 



TTte library "of the 

JUNO 5 1989 



University of Illinois 
pi Hrban»-GhAm0alfln 



Printing Office and the Adult Literacy Initiative of the U.S. Department of Educa- 
tion, the symposium stressed that literacy is a major societal issue and is crucial 
to the future of the printing and publishing industry. Prominent speakers includ- 
ed: Then Secretary of Education Dr. William J. Bennett; Congressman William 
Goodling; Harold W. McGraw (Chairman Emeritus of McGraw-Hill, Inc., and 
President of the Business Council for Effective Literacy); and Dr. David Harman 
(internationally renowned literacy expert and author). In a letter to symposium 
attendees, Mrs. Barbara Bush, wife of the Vice President of the United States, 
wrote: 

"The printing industry has an enormous stake in a more literate America- 
so much to lose as a consequence of functional illiteracy, and so much to 
contribute to our national movement. I offer congratulatory thanks to the 
U.S. Government Printing Office and the Department of Education for joint- 
ly sponsoring today's very ambitious symposium, and to the literacy experts 
and printing industry leaders who are joining forces in this innovative effort. 
This kind of cooperation is absolutely essential when it comes to working 
for literacy." 

As a service organization, the GPOs future is dependent in large measure upon 
the needs and desires of our customers. The most recent years have seen a 
trend toward increasing requirements for even shorter schedules and more per- 
sonalized service. It is imperative that the GPO continue to evolve in order to 
accommodate these requirements, for it is only through responsive service that 
GPO can fulfill its mission. As I look back over the accomplishments of the last 
4 years, I feel strongly that GPO is an agency that is moving confidently toward 
the 21st century, able to adapt and grow, and be a leader and innovator in 
new publishing technologies. Even more, it is an agency where "demand-driven 
and service-oriented" is no longer a revolutionary credo, but a quiet, integral 
part of its day-to-day operations. 




Ralph E. Kennickell, Jr. 
Public Printer 



Deputy Public Printer's Message 




Joseph E. Jenifer 
Deputy Public Printer 



Office of 
Inspector General 



Fiscal year 1988 saw further refinement in GPO's organizational structure. The 
Administration and Human Resources areas were combined in January under 
the Assistant Public Printer (Administration and Resources Management). In 
addition, the position of Assistant Public Printer (Financial Policy and Planning) 
was established to serve as chief financial officer of the GPO and represent the 
agency on all financial matters. The Office of Financial Policy and Planning also 
serves as GPO's strategic planning center. 

As part of our continuing efforts to modernize our production processes, we 
purchased three new drilling machines for our Binding Division, procured a new 
film dispenser for our Negative Section, acquired a new 70-mm projection 
platemaker, developed custom software, and upgraded our Atex text 
processing systems. We also installed two new wastepaper baling machines 
including a dust collection/filtration system, and a new cleaning and crushing 
operation for emptied drums which brought us in line with new, more stringent 
environmental regulations. 

As GPO evolves from an ink-on-paper operation to full integration of the most 
sophisticated electronic publishing technologies, we are reaching out into 
diverse and exciting new areas. A pilot project to test the feasibility of using FM 
radio sidebands as an alternative method of distributing data was tested by our 
Office of Innovation and Development with promising results. Through an 
agreement between GPO, the Office of the Federal Register, and a private 
contractor, the Federal Register has been broadcast to a number of receiving 
stations every night. Software was developed in our Graphic Systems 
Development Division to compare the data received over the FM antenna 
against the data that were broadcast. Although some errors were found in the 
received data, none were the result of the new FM broadcast technology. 

CD-ROM mastering and replication is being accomplished through 
procurement, and we have leased a CD-Publisher PreMastering System which 
will be used in the production of CD-ROMs in-house. "Dial-up" composition is 
steadily growing with 40 customers, utilizing 136 workstations, taking advantage 
of this advanced technology at the close of the fiscal year. 

Never in GPO's history has the spirit of change and technological growth been 
so palpable. While meeting the requirements of the present, we look forward 
with anticipation to our evolving role as a leader and innovator in the new and 
ever-changing technologies of the information industry. 

The role of the Office of Inspector General is to identify problems and 
weaknesses and prevent fraud, waste, and abuse. During fiscal year 1988, the 
Office of Audits (OA) issued 50 reports which assisted GPO managers in 
reducing costs, improving operations, and strengthening internal controls 
against fraud, waste, and abuse. Implementation of OA recommendations 
resulted in cost savings and management commitments to avoid costs or more 
effectively use resources. Savings of up to $15.2 million may result from 
questioned costs on contractor claims. 



Office of Public Affairs 



§' Confer 




The Office of Investigations (01) handled a total of 60 reported or referred 
matters. A total of 41 cases were opened and 28 closed. Of those cases 
opened, the Ol conducted 34 criminal and 7 noncriminal investigations. The Ol 
carried over 9 active investigations and closed 25 investigations from previous 
fiscal years. The Ol presented three civil matters to United States Attorneys 
Offices resulting in court-assessed civil penalties totaling $85,000, monetary 
fines totaling $1,650, and restitutions totaling $406,730. 

During fiscal year 1988, GPO's Office of Public Affairs carried out its day-to-day 
recurring functions, while handling numerous special projects. 

Foremost among those was the preparation, conduct, and followup required for 
the hosting of the 1988 International Government Printers' Conference. The 
commitment made to this major project brought about a level of success 
surpassing even the highest of expectations. With support and assistance from 
other GPO organizations and external sources, the Public Affairs staff assumed 
overall responsibility for the conference and assured that the 52 international 
delegates, numerous spouses, and corporate, association, and Federal 
attendees were provided personalized service and attention throughout the 
event. Along with handling all preliminary and onsite technical and material 
needs for the conference, the staff followed up with thank you letters and 
communications to those individuals involved with its success. This event was 
the first of its kind in GPO's history and has enhanced the reputation of the 
Office on a worldwide scale. 

For the third year in a row, the Public Affairs Office coordinated the distribution 
of the Budget of the United States, provided for media opportunities, and 
handled arrangements for the GPO-hosted press conference. In addition, the 
Public Affairs staff was heavily involved in preparations and activities relating to 
Graph Expo '87, FOSE '88, the public celebration of "National Police Week," and 
the observance of "Constitution Week." Assistance in arranging for the Veterans 
Day program and in coordinating the Christmas Open House and Community 
Children's Day was also provided to the appropriate organizations. GPO's highly 
regarded Adopt-A-Family Program continued during the fiscal year under the 
coordination of this office, with eight families receiving assistance. Public Affairs 
support continued in the area of video coaching, with nearly all managers at 
the Department/Service level and above completing the program. 

Another important accomplishment was the reinstatement of the notification to 
Members of Congress when a contract valued at more than $100,000 is issued 
to a firm in their particular district or State. During fiscal year 1988, more than 
1 ,300 notification letters, with accompanying news releases suggested for 
publication, were processed. 



Operations 



The Assistant Public Printer (Operations and Procurement) is responsible for all 
pre-press, press, and binding operations at GPO's central office printing plant; 
the quality control and related technical assistance to all GPO production and 
procurement operations; and technical expertise and liaison to GPO's customers 
to meet their printing requirements in the most cost-effective manner. The 
primary responsibility of the Assistant Public Printer (Night Operations) is to 
supervise the printing and delivery of the Congressional Record and Federal 
Register, and to correlate this delivery with the production of congressional bills, 
committee prints, documents, hearings, and reports; while, at the same time, 
rendering all possible assistance to requests for help in advancing departmental 
work. 

Production Department GPO's central office printing plant primarily serves the short-turnaround printing 

requirements of the Congress. It is located four blocks north of the U.S. Capitol 
and employs over 2,000 production personnel to provide a full line of printing, 
binding, and related products and services to the Federal community. Last 
year, GPO's central office in-plant operations produced a net income of $7.6 
million. Major congressional products include the Congressional Record, bills, 
resolutions, amendments, reports, and hearings. 

The Electronic Systems Development Division (ESDD) provides electronic 
technical services to the Congress, the GPO Production Department, other 
areas of the GPO, and other Government agencies. The workload in ESDD is 
increasing with the continuing expansion of dial-up composition and installation 
of a new text editing system which will require a substantial amount of wiring, 
testing, and training. The delivery of the Videocomp Model 570 phototypesetter 
will require retraining of technicians and rearranging the Phototypesetting 
Room. During the fiscal year, ESDD completed the process of upgrading all 
existing 30mb disk drives to 80mb disk drives on Atex systems; completed the 
process of upgrading all existing magnetic tape units from 800bpi to 
800/1 600bpi on the Atex systems; and installed text editing systems consisting 
of all or part of the following components: IBM AT Personal Computer or PS/2 
Model 60, QMS laser printer, Hayes modem, with necessary cabling and 
switches at various agencies and congressional committees. 

During the fiscal year, the Graphic Systems Development Division (GSDD) 
continued to design, develop, and integrate automated graphic systems into 
operations for the production of the publications. Creation of new sections 
within the division was also accomplished during the year. The Composition 
Development Section endeavors to improve the composition software that is 
used in the Production Department, the Data Base Development Section is 
involved with the premastering of CD-ROMs, and the Systems/Communications 
Development Section maintains the operating systems and communications 
networks. In addition, the new Remote Applications Section will handle the 
number of new customers who are running composition over dial-up lines, fiber 
optic cable, or using PC-based composition software. There are now 40 




customers using the GPO dial-up systems. Fifteen of these customers are using 
the fully automatic system on the PDP- 11/44. Seven of the 15 are connected 
into GPO over the Ethernet link and the other 8 are using modems. All modems 
now on the automatic system have been upgraded to operate at 9600 baud. 
The remaining customers will be moved onto the automatic system as their 
training period concludes. In support of the pilot project using FM radio 
sidebands as an alternative method of distributing data, software was 
developed in GSDD to compare the data received over the FM antenna against 
the data that were broadcast. In addition, the division has leased a CD- 
Publisher Premastering System which will be used in the production of 
CD-ROMs. 

The Electronic Photocomposition Division (EPD) is responsible for the operations 
necessary to produce camera-ready pages for use in preparation of plates for 
printing. These operations include copy markup, proofreading, data capture via 
keystroke and laser scanner, computerized composition operations, and 
typesetting. EPD continues to improve and enhance the abilities of its electronic 
printing system. The production of the Congressional Record and the Federal 
Register runs smoothly and has been enhanced with the addition of timesaving 
devices, production standards for employees, and programming changes. The 
largest Congressional Record ever was printed in fiscal year 1988 and totaled 
712 pages. Introduction of custom software on PCs with bar code reading 
devices now provides fast, accurate production standard measurement reports 
for proofreaders in the Proof and Copy Markup Section. These systems upload 
to and download from the mainframe automatically daily. Use of these systems 
in the EPD proofroom allows supervisors to search their files for missing or "hot" 
material. An apprenticeship program has been established in the keyboard and 
proofreading areas to ensure an adequate workforce in order to meet the 
needs of Congress and our customer agencies. 

Specific goals of the Press Division are to continue to control the problems of 
waste, overruns and underruns, shortages, stock control, plate remakes, 
spoilage, and alcohol utilization, in an effort to reduce costs resulting from these 
problems. Improvements of new equipment replacing that which is old and 
worn out or outdated by new technology continues in all sections of the 
division. The Negative Section constructed a new camera workstation for the 
70-mm camera and film processor. The section also procured a new film 
dispenser capable of cutting roll film up to 42 inches in width. The Plate Section 
acquired a new 70-mm projection platemaker and a new step-and-repeat 
machine to replace an older model which had become mechanically unreliable. 
The Postal Card Section expanded to include a night shift to operate both the 
five-color press and the cut/pack system. With the two-shift operation, 
production increased in excess of 150 million cards, bringing the total 
production of cards produced in fiscal year 1988 to over 600 million. The last of 
the group 60 presses was removed from service. This marks the end of an era 
as these presses were manufactured in 1925 for printing postal cards. During 
the year the section produced seven commemorative postal cards and a 
complete set of regular cards for the April rate increase. 



The Binding Division performs all finishing operations on work processed in the 
GPO. The division's modernization plan is still progressing as outdated 
machinery is being replaced with new equipment. Three new drilling machines 
were installed; contracts were awarded to Heidelberg Corporation for an 
automated hardcover book line and a 3-inch jumbo minibinder; and 
specifications for a 24-box adhesive binder with a side-stitch unit were 
completed. In addition, as of September 30, the bookbinder training program 
has produced 21 operators. Twenty-one additional trainees are presently 
enrolled in the program. U.S. passport production increased by approximately 2 
million books this fiscal year. This dramatic increase was attributable to a 
change to a nonwoven cover material and the addition of a second shift to 
operate the automated line. In addition, a number of equipment modifications 
were developed by employees assigned to this operation adding to the 
increased production. Peak issuing season production averaged approximately 
200,000 books per week. 

Quality Control and The Quality Control and Technical Department develops, coordinates, and 

Technical Department monitors quality systems for products produced and procured by GPO. These 

systems encompass specifications and standards, sampling and inspection, 
process controls, quality audits, mathematical studies and analyses, and 
management reports. The Department accepted new responsibilities this fiscal 
year to help the Office cope with increasingly more stringent environmental 
regulations and new technology being utilized both in the graphic arts industry 
and by our more technically sophisticated customer agencies. 

Major Department accomplishments include the publication of GPO Contract 
Terms Quality Assurance Through Attributes Program for Microforms Publication 
310.3, Technical Report No. 27, on sampling, and a number of new or revised 
quality procedures needed to refine the GPO quality assurance system. In 
addition, the Paper Division continued work on the expansion of the JCP 
Government Paper Specification Standards to cover a variety of new 
commercial grades from No. 1 premium paper to less expensive publication 
grades. 

A new program was implemented to dispose of potentially hazardous wastes 
generated by the Office which included a cleaning and crushing operation for 
emptied drums that dramatically decreased disposal costs. The Department also 
supported a major and successful effort to bring our offset press operations into 
compliance with the volatile organic emission requirements imposed by the D.C. 
Department of Environmental Services. 

During the past year Quality Control accomplished numerous projects including 
monitoring Office asbestos removal, testing GPO drinking fountains for possible 
high levels of lead, cooperative efforts with Naval investigators regarding 
fraudulent NATO gas coupons, working on U.S. passport and FBI fingerprint 
card specifications, and participation in interagency efforts to provide guidelines 
on the longevity of commercial paper. Congressional interest was apparent in 
our test of soy oil ink for printing the Congressional Record and the Federal 
Register. 



Engineering Service 



Customer Service 
Department 



Engineering Service provided support to the agency in the traditional areas of 
building maintenance, building renovation, and equipment installation and 
servicing. A structural realignment of the Facilities and Engineering Divisions 
provided more efficient engineering services in support of the agency's 
production mission. Significant in this realignment was the development and 
refinement of the Service's data processing apparatus. In the Facilities Division, 
introduction of the maintenance job order (MJO) and service call computer 
system will allow customers to request Engineering's services, as well as 
provide information relative to services requested, by accessing this system via 
their on-line stations. 

The Facilities Division processed 30,300 service calls and completed major 
projects of structural enhancements and equipment installations in the Binding 
and Press Divisions. The division also completed the GPO Self-Service Store, a 
major project in the Materials Management Service. The Engineering Division, 
which provides the Agency's structural design and production analysis needs, 
introduced the Computer Aided Drafting and Design (CADD) System. When 
completed, the system will eliminate manual drawing for various future projects. 
This fiscal year, the CADD System contributed immeasurably to the production 
of 10,000 prints of engineering drawings, the creation of 158 major new 
drawings, and 226 revised drawings. Other design projects either completed or 
in progress include the GPO Cafeteria renovation, a new audio-visual center in 
the Carl Hayden Room, replacement of the wastepaper bailing system, removal 
of asbestos, pollution control in the form of wastewater testing, and 
underground tank monitoring. 

The Customer Service Department coordinates all aspects of the printing, 
binding, and distribution requirements of the Congress and Federal agencies. 
During the fiscal year, Department representatives maintained active 
membership on the major electronic publishing committees in the area to 
disseminate information concerning GPO's advances in technology and to keep 
abreast of the needs and desires of the publishing community. Customer 
demand continued to be our primary driving force, with efforts directed toward 
the achievement of customer satisfaction through timely response, accurate 
information, and maximum service. 

As primary contact with our customer agencies, the Departmental Account 
Representative Division continued to expand and refine their customer outreach 
efforts. Division personnel were involved in over 700 meetings with 
representatives from the GPO, customer agencies, and commercial contractors. 
These meetings, including 268 agency visits, were concerned with all phases of 
planning and were a part of continuing efforts to offer more personalized 
service. The newly established Electronic Publishing Section made significant 
gains in staying abreast of current technology in such areas as CD-ROM, 
Standard Generalized Markup Language (SGML), and Computer Aided 
Acquisition and Logistics Support (CALS), in order to help GPO meet the 
technological challenges of the future. 



8 




The Congressional Printing Management Division (CPMD) coordinates the 
scheduling, printing, and distribution of congressional printing and binding, and 
performs as printing liaison specialists to the committees, offices, and officials of 
Congress. During fiscal year 1988, CPMD made significant gains in its efforts to 
automate congressional printing. In addition to receiving previously captured 
keystrokes on the approximately 250 to 300 pages of nominations which 
appear annually in the Congressional Record, coordinated efforts of 
congressional staff and GPO personnel resulted in an increase of customers 
using dial-up composition. At the end of fiscal year 1987 there were 8 
congressional offices using dial-up composition; at the end of fiscal year 1988 
there were 25 congressional dial-up customers, employing 42 systems. In 
conjunction with House Information Systems, receipt of files through the fiber 
optic cable from those congressional customers not yet using dial-up also 
increased. 

The Production Planning Division continued their efforts to plan and schedule 
in-house work in a cost-effective and expeditious manner. With the cooperation 
and joint efforts of division personnel and PEPS staff programmers, the 
Production Estimating and Planning System (PEPS) was completed during the 
fiscal year. Under a new "negotiated price" policy, 249 jobs were produced by 
GPO, saving our customers approximately $1.7 million. In addition, a negotiated 
price was established to allow the GPO to produce negatives at a discounted 
rate for commercially procured printing in order to increase the work-hours in- 
house and provide our customer agencies with a competitive price. During 
fiscal year 1988, the division placed 88,811 such negatives, resulting in an 
additional 800 hours worked in GPO's Offset Negative Section. The Estimating 
and Jacket Preparation Section saw an overall increase in the number of formal 
and informal cost estimates, and an increase in jackets written of 1 1 percent. 
The Paper and Materials Control Section received requisitions from various 
ordering agencies for supplying requirements of blank paper, envelopes, inks, 
glues, cold padding compounds, and other miscellaneous supplies totaling 
4,149. 

The demand for design, illustration, consultation, photographic and video, and 
quality control services from the Typography and Design Division continued to 
increase dramatically throughout the fiscal year. There was a 42-percent 
increase in both the number of dummy pages pasted and layout sketches 
prepared each month, reflecting a growing demand for design services from 
our customer agencies due to staff reductions in their graphic design 
departments. New graphics computer workstations have facilitated the design 
process and will be enhanced as the industry's capabilities increase. In addition, 
Technical Review staff conducted 386 press sheet and bindery inspections at 
contractors' plants nationwide, as well as performing proof and press sheet 
inspections in GPO production areas. Typography and Design Division 
personnel assisted in the production of a number of prestigious publications. 
Among these were: The Capitol Magazine -a Pictorial History of the Capitol and 
of the Congress; The History of the Senate; Bicentennial Calendar; The Journey 
Continues, a documentary of the Space Shuttle; and, the many volumes of the 
Iran-Contra Reports. 



Procurement 



Printing Procurement 
Department 



The Assistant Public Printer (Operations and Procurement) is responsible for the 
purchasing of the Government's printing and binding requirements from 
commercial contractors and for the acquisition and management of all materials, 
supplies, paper, and equipment used by the Office. 

In fulfilling the information needs of the Federal establishment, GPO adheres to 
the Governmentwide policy of utilizing private sector contractors to the 
maximum possible extent to obtain products and services at the most 
competitive prices. Reflecting this policy, about 74 percent of GPOs total fiscal 
year 1988 printing and binding revenue came from work contracted to 
commercial printers. 

In fiscal year 1988, the Printing Procurement Department (PPD) made 
substantial improvements in automation, training, and overall operations. 
Although the workload decreased by 33,709 jobs in fiscal year 1988, the dollar 
volume increased by $56.5 million. The increased dollar volume was due to the 
printing of publications such as the AIDS booklet purchased by the Atlanta 
Regional Printing Procurement Office (RPPO) for $3.4 million. This was the 
largest single-award contract ever issued by a GPO regional office. Automation 
continues to enhance PPD's ability to be more responsive to GPOs customer 
agencies. Twenty-three additional agencies were provided access to the 
Procurement Information and Control System (PICS) bringing the total number 
of agencies with access to 70. Many new reports, enhancements, and systems 
were implemented to further the Department's goal of procuring quality 
products in a timely manner. 

A major contract, Program 50-S, was negotiated and awarded during the fiscal 
year. It is a $9.2 million, 3-year contract that will procure all of the Air Force's 
technical publications. This automated publishing contract will be the prototype 
of all the military publications contracts of the future. To further improve our 
response time to our major customers, a satellite printing procurement office 
was opened in Pittsburgh, Pennsylvania. The first GPO contract for CD-ROM 
was awarded and successfully completed. 



Procured Printing vs. 
In-House Work 

Fiscal Year 1988 
(Dollars in Millions) 

$648.3/Procured Printing 

$14.4/Regional Printing 

$154.3/Plant Printing* 

'Excludes blank paper and other operations. 




Procured Printing vs. 
In-House Work 

Fiscal Year 1987 
(Dollars in Millions) 

$591.8/Procured Printing 

$14.2/Regional Printing 

$145.8/Plant Printing* 



I 



w 



10 



Materials Management 
Service 



The Materials Management Service is responsible for the acquisition of 
materials, equipment, supplies, commercial services, leasing of commercial and 
Federal space, and transportation services; receiving, shipping, and maintaining 
current inventory records of paper, envelopes, materials, and supplies; initiating 
and accounting for the shipment of Government postcards; and providing 
authorized support to GPO operations and other Federal agencies. 

During fiscal year 1988, eight major contracts procured equipment and repairs 
ranging from a saddle binder, to a mainframe computer upgrade, to a roof 
replacement. In addition, 23 various pieces of equipment were purchased for 
the regional printing offices throughout the country. Two leases were negotiated 
for new bookstores, and space was obtained for a satellite printing procurement 
office. The paper warehouse is particularly careful to maintain an inventory 
adequate to support the pressrooms. During the fiscal year, an average of 
33,400,000 pounds of paper was in inventory each month. 

In an effort to decrease labor costs, the GPO Self-Service Store opened in 
August. Through the use of bar-coded products, laser scanners, and the 
capabilities of the Materials Management Procurement and Control System 
(MM PCS), the facility quickly became a success. Two heavy-duty wastepaper 
baling machines complete with a dust collection/filtration system were installed 
in January replacing three smaller, outdated baling machines which had been 
in service since 1967. The Materials Management Procurement and Control 
System was expanded to the Denver RPPO allowing completely on-line 
processing, eliminating all manual records. 




11 



Superintendent of Documents 



Marketing 




The Assistant Public Printer (Superintendent of Documents) is responsible for a 
broad range of Government information dissemination programs and services, 
including the sale of Government publications, the compilation of catalogs and 
indexes of Government publications, the distribution of publications to 
depository libraries and as otherwise required by law, as well as reimbursable 
publications fulfillment services. 

Significant achievements in fiscal year 1988 included: Exhibits of GPO sales 
titles mounted at international book fairs in Frankfurt, Cairo, New Delhi, Manila, 
Buenos Aires, Mexico City, and Barcelona in cooperation with U.S. Information 
Agency's "Books Abroad" program; an exhibit of approximately 150 sales titles 
at the Sixth Riyadh International Book Fair in a cooperative project with the 
Department of Commerce Foreign Commercial Service; appointment of a Saudi 
bookdealer to distribute GPO sales titles; and continuing liaison with distributors 
in Canada, the United Kingdom, and Italy. In addition, a U.S. -based distributor 
agreed to provide global importing services for Government books in countries 
not served by previous distribution agreements. 

The Office of Marketing continued to develop and distribute promotional 
materials designed to increase public awareness of and access to Government 
information through the Publications Sales and Federal Depository Library 
Programs. A new series of print Public Service Announcements (PSAs) created 
a wave of public interest for the U.S. Government Books catalog of new and 
popular publications. PSA sets were distributed nationwide to major newspapers 
and magazines, journals, newsletters, college newspapers, and to Federal 
publishers Governmentwide. Since their distribution in June 1988, the new 
PSAs have appeared in almost 200 newspapers and magazines, generating 
approximately 12,000 requests for the catalog. As in past years, Marketing 
developed sales promotions in cooperation with publishing agencies. 

During the fiscal year, Marketing produced 675,000 U.S. Government Books 
catalogs and 348,000 copies of New Books, a bimonthly listing of all new 
publications entering the sales program in a 2-month period. Marketing also 
produced more than 1 million direct-mail flyers promoting specific publications 
or groups of publications to specialized audiences. Expanded marketing efforts 
on behalf of the U.S. Government bookstore network included the development 
of flyer formats for use by individual bookstores conducting their own direct-mail 
programs, the creation and distribution of a flyer promoting the opening of a 
new bookstore in Portland, Oregon, direct-mail letters to specific audiences in 
bookstore cities, and extensive market research aimed at developing individual 
marketing plans for each bookstore. 

Depository Library Program marketing highlights included the redistribution of 
broadcast Depository Library Public Service Announcements to almost 50 cable 
TV systems nationwide, the distribution of large quantities of promotional 
bookmarks, brochures, and Depository Library directories, and the development 
and distribution of "take-one" box-and-easel kits used for the dissemination of 
U.S. Government Books catalog request cards in depository libraries. 



12 



Library Programs 
Service 



Documents Sales 
Service 



During fiscal year 1988, Library Programs Service distributed 14.5 million 
copies ot more than 28,000 titles in both paper and microfiche. This represents 
a reduction from fiscal year 1987 volumes, primarily due to problems with 
microfiche contracts. All issues of the hard copy Monthly Catalog were 
completed and distributed ahead of schedule. GPO has taken several steps to 
enhance its position as a primary provider of bibliographic information in 
machine-readable format. A complete Monthly Catalog master file was 
presented to the Library of Congress Cataloging Distribution Service, which can 
now provide the most accurate data to its customers. This updated file is 
available for sale from the Superintendent of Documents, and this summer was 
released to OCLC, GPO's first MoCat tape subscriber. 

The second edition of the Government Printing Office Cataloging Guidelines and 
a complete revision of the Instructions to Depository Libraries was developed 
and issued to all Federal Depository Libraries. Work was initiated on a revision 
of the Guidelines for the Depository Library System and the Federal Depository 
Library Manual. Late September saw the publication and distribution of The 
United States Congressional Serial Set Catalog: Numerical Lists and Schedules 
of Volumes for the 98th Congress. 

The Information Technology Program moved beyond the initial planning phase 
during fiscal year 1988 when the first CD-ROM disk was distributed to selected 
depository libraries. September marked the debut of this format for the 
Depository Library Program, when disk, hard copy documentation, and a floppy 
disk containing retrieval software published by the Census Bureau (and 
procured through GPO) was distributed to 143 depository libraries. The 
remaining 1,251 depositories will receive the material early in fiscal year 1989. 

Fiscal year 1988 ended with a number of developments that should keep 
Documents' programs on a firm footing as we begin the new fiscal year. 
Several special projects continued to improve customer service and generate 
revenue, while the Reimbursable Mailings Program continued to grow. The 
transfer of several activities from Financial Management Service to the Order 
Division provided Documents with greater control over order processing and 
invoicing. Customers calling the order and information desk now receive 
improved service with the recently installed Voice Connect System. Callers 
automatically reach the system and using their pushbutton telephones, are 
guided through a listing of recently released publications, told about the service 
areas, and given the opportunity to place an order or speak directly to a clerk. 

The bookstore program showed an increase in revenue for the fiscal year. 
Fiscal year 1988 also involved an opening of a new bookstore in Portland, 
Oregon, relocation of the Cleveland store, and the closing of the Commerce 
Department bookstore. 

Automation projects showed progress during the year. Detailed Functional 
System Requirements for the Automated Sales Records System were 
completed. Further, data entry forms and a users guide were prepared for the 
Subscription Management System Interim. In addition, progress was made on 
development of the Subject Bibliography Production System. The IRS tax form 
fulfillment system was also improved for the upcoming tax year. 



13 



Administration and 
Resources Management 



Financial Management 
Service 




Information Resources 
Management 



The Assistant Public Printer (Administration and Resources Management) is 
responsible for the information, financial, and human resource management; 
security; administrative support; and equal employment opportunity programs of 
the GPO. 

Financial Management Service (FMS) is responsible for developing systems and 
procedures and for providing comprehensive accounting, collecting, disbursing, 
and billing services in support of GPO's operations. This year, FMS focused its 
efforts on improving service to GPO's customers, contractors, and employees, 
and on delivering timely and accurate financial information to GPO managers. 
Through the utilization of new office automation technology and new 
management approaches to the workflow process, FMS achieved a 3-percent 
decrease in its total operating costs from last year. In addition, emphasis on an 
improved cash management program resulted in approximately $9 million taken 
in cash discounts offered by contractors and suppliers and a 10-percent 
increase in GPO's cash posture. 

Financial Management Service has been actively involved in the automation of 
many of its functions. For example, the Millennium upgrade to the off-the-shelf 
general ledger software package was implemented. This upgrade eliminates the 
use of punched cards, allows the on-line design of reports, and provides an on- 
line query capability. The GPO Cost Center Data Base, which is the first data 
base designed specifically for use by all GPO organizations, was installed on 
the mainframe. In addition, the FMS Network, a local area network for on-line 
access to current financial data, was expanded to include top GPO 
management officials. 

Financial Management Service converted the processing of U.S. Savings Bonds 
for 1,600 GPO employees to a personal computer-based system in April 1988. 
This change, which was necessitated by the Department of the Treasury's 
redesigned bond format and directive to issue paper bonds, is faster and more 
cost-effective than the manual system it replaced. An electronic funds transfer 
payment option for GPO's commercial printing contractors located throughout 
the United States was initiated in August; about 1,700 contractors have elected 
to participate thus far. This is the first step in the projected conversion of 
payment systems to electronic means, which will eventually include the option 
of direct deposit of employee paychecks and savings allotments. FMS is also 
investigating acquisition of an optical disk system that would virtually eliminate 
paper from the invoice processing system. 

The Office of Information Resources Management (OIRM) provides Officewide 
information automation services. This year, OIRM implemented several new 
information systems and many major enhancements to existing systems to 
better serve the GPO, other Federal agencies, and the public. For example, the 
development of a structured, nonredundant corporate data base was greatly 
enhanced by the conversion of many conventional computer files to operate 
within GPO's Data Base Management System (ADABAS), the introduction of 
Computer Aided Software Engineering (CASE) tools, and the installation of 
SUPERNATURAL, a user query language. 



14 



The Congressional Record electronic access and retrieval system was installed 
in October 1987 and has operated in a pilot test mode. The contractor's 
proposal for system enhancements based on a modified user requirements 
report by the Senate Computer Center is under review. In addition, the 
Computer Data Center underwent major changes. The purchase of a new 
computer mainframe was finalized, and a new mainframe operating system was 
installed which provides additional parameters for the installation of new 
systems and removes operating restrictions from on-line systems. 

The newly developed Government Bill of Lading System expedites the billing 
and control of bill of lading preparation, and the establishment of the GPO Self- 
Service Store on-line system permits users to obtain office supplies by utilizing 
bar code technology. Enhancements were also made to the IRS Order 
Fulfillment System; originally planned as a minor system, this has evolved as an 
all-inclusive system supporting data entry, order fulfillment, inquiry, on-line and 
batch reporting, billing, and credit card charging. For tax year 1987, the system 
handled approximately 42,000 orders providing over $2.2 million in revenue. 

Security and Support Security and Support Services is responsible for GPO's law enforcement, 

Services physical and information security, and administrative support functions. During 

fiscal year 1988, GPO's Information Security Program was enhanced with the 
revision of guidelines concerning the handling of national security information 
within GPO. The Uniformed Police Branch received new communications 
equipment allowing it to maintain better radio contact with its police units, the 
Emergency Command Center, and various emergency response teams. 
Physical security within GPO has also been enhanced with the installation of a 
new closed-circuit television system and the acquisition of a new automated 
alarm system. 

Security has also been active in developing and implementing antiterrorist 
procedures and facilities. It is presently working with the Capitol Police to devise 
new security measures to protect the Capitol from the introduction of 
contraband through materials GPO delivers to the Capitol. Responsibility for 
computer security and compliance with the Computer Security Act of 1987 was 
undertaken by the newly established Telecommunications and Automated 
Information Systems Security Group. 

Support Services continued to automate and update Officewide functions and 
programs to better serve GPO's information and support needs. In an effort 
aimed at total accountability of postage expenses, which were in excess of $12 
million in the last year, postage meter systems have been installed in GPO's 
regional offices and bookstores. All administrative mail leaving the central office 
is also metered. The Technical Services Group will be responsible for receipt of 
contractors' mailing statements from the Postal Service and verification of billing 
and postage on future Printing Procurement contracts. 



15 



Human Resources GPO's Office of Human Resources is responsible for programs and services 

which impact all areas of human resources management including policy 
development and all personnel, labor-management relations, and employee 
safety and health matters at GPO. Human Resources developed a number of 
innovative programs and initiatives to improve employee morale and meet 
workforce needs, as well as to improve support to management. 

The introduction of state-of-the-art training resources highlighted the activities of 
Personnel Service. An interactive videodisc training station for individualized 
tutorial training was installed; the first application will be in the Executive 
Management Development Program. An automated classification system was 
developed, and plans for creating a training guide/manual are underway. A 
new Personal Computer Center was established; it has been used to train more 
than 300 employees, saving over $40,000 in tuition thus far. Personnel also 
conducted an on-campus recruitment program for college graduates, and the 
apprentice program was revitalized. 

The Labor and Employee Relations Service negotiated a Master Agreement 
with 13 central office unions covering about 4,000 employees as well as a 
3-year wage agreement with 1 1 unions covering 2,600 employees. A central 
office smoking policy paralleling the GSA guidelines was also negotiated. 
Effective June 1988, the Joint Committee on Printing determined that GPO must 
negotiate wages for employees in the American Federation of Government 
Employees' bargaining unit, which precluded adopting the August wage 
increase for clerical employees. The Employee Relations Branch administered 
GPO's highly successful Combined Federal Campaign; a total of $206,000 was 
collected, $41,000 over GPO's goal. 




16 



Occupational Health and Environmental Services and the Policy and Evaluation 
Staff teamed up to address two of the most pressing social issues in today's 
workplace. At the direction of the Public Printer, they developed a policy and 
program directive on a drug-free workplace, including guidelines on reasonable 
suspicion testing, testing of job applicants, counseling, and disciplinary options. 
They have also established a GPO Task Force on AIDS, and developed an 
informational manual on the disease. This booklet, which will be distributed to 
all GPO employees, will include information concerning the disease and its 
effects, both emotional and physiological; health benefits; treatment centers and 
psychological support groups; and privacy considerations. 

The Occupational Health Division held GPOs first annual Health Fair, providing 
GPO employees with such benefits as blood testing and computer-generated 
"Health Risk Assessments." As part of an all-out assault on smoking in the 
workplace, a formal "Freedom from Smoking" clinic was conducted. In addition, 
the position of Industrial Hygienist was established to monitor the workplace 
environment. 

Equal Employment The Equal Employment Opportunity Service (EEO) assists GPO management in 

Opportunity Service adhering to Government laws, regulations, and policies concerning equal 

employment opportunity for all employees and applicants for employment. The 
Service administers the discrimination complaint system, provides counseling 
services, and evaluates EEO plans and programs throughout GPO. 

The Service prepared and submitted GPO's Multiyear Affirmative Employment 
Program Plan for fiscal years 1988-1992 to the Equal Employment Opportunity 
Commission. EEO also completed the first segment of a cyclical evaluation of all 
GPO installations, including the central office, regional offices, and bookstores. 
The evaluation is designed to determine strengths and weaknesses in all areas 
of the total EEO program; specific recommendations were made to the Public 
Printer as a result of this effort. 

The Handicapped/Disabled Veterans Program was added to the Division of 
Affirmative Programs. Its mission includes establishing programs which address 
the concerns of employees and applicants with physical and mental handicaps, 
including the hearing impaired and disabled veterans. 

Thanks to its activities in career programs and community-related efforts with its 
adopted schools, GPO was cited for the second consecutive year as an 
Outstanding Partner among Federal agencies as part of the Partners in 
Education Program. More than 80 students worked at GPO in the D.C. 
Government's Summer Youth Employment Program and 9 students from GPO- 
adopted schools participated in the In-School Program. 



17 



Financial Policy and Planning 



The Assistant Public Printer (Financial Policy and Planning) serves as the chief 
financial officer of the Government Printing Office and represents the GPO on 
all financial matters before the House and Senate Appropriations Committees, 
the Joint Committee on Printing, the Office of Management and Budget, and 
other external agencies/departments. The Assistant Public Printer also serves as 
Chairman of the GPO Management Resources Committee (MRC). The Office of 
Financial Policy and Planning (FPP) is GPOs strategic planning center with 
responsibility for coordinating the establishment of all GPO financial policy, 
planning, and analysis, including the preparation of GPOs budget and capital 
investment priorities and the development of annual and outyear revenue and 
spending targets. 

This year, FPP prepared and coordinated the presentation of GPO's fiscal year 
1989 appropriations request before the Legislative Branch Appropriations 
subcommittees of the Senate and House of Representatives. The request was 
for $104.5 million, including $77.7 million for the Congressional Printing and 
Binding Appropriation and $26.8 million for the Superintendent of Documents' 
Salaries and Expenses Appropriation. In addition, the appropriations package 
contained a variety of administrative proposals to provide GPO with additional 
authorities and otherwise clarify the intent of Title 44. Final congressional action 
on the request resulted in total appropriations of $85.7 million ($72 million for 
Congressional Printing and Binding and $13.7 million for Salaries and 
Expenses). In addition, $11.4 million in net income generated by the 
Superintendent of Documents' Sales of Publications Program in fiscal year 1987 
was made available to offset the requirements of the Salaries and Expenses 
Appropriation. Most of the administrative proposals in the appropriations 
package were approved, with the exception of GPO's request for flextime 
authority and for elimination of the statutory ceiling on Full-Time Equivalent 
(FTE) employees. 

The office is responsible for overseeing the execution of budget and spending 
priorities in accordance with congressional policy. A key policy governing GPO 
expenditures is the congressionally imposed limitation on employment of FTEs. 
For fiscal year 1988, the FTE ceiling was 5,237; the ceiling approved for fiscal 
year 1989 is 5,117. The office is responsible for proposing allocations of FTEs 
throughout GPO to the Public Printer and for monitoring their use. 

The office provides essential staff support to the MRC by performing 
cost/benefit analyses on spending proposals requiring MRC approval. During 
the year, the staff performed cost/benefit analyses on 35 such projects, valued 
at $4.6 million. Twenty-four of these projects were approved, valued at $2.9 
million, including the relocation of the Chicago RP&PO and the Atlanta 
bookstore. In addition to the fiscal year 1988 proposals submitted to the MRC, 
the fiscal year 1989 proposals for MRC approval were prepared and presented 
by office staff. Almost $11.8 million in new spending projects was approved by 
the MRC for the coming fiscal year, while approximately $5.8 million in new 
spending proposals was disapproved or deferred pending additional information 
or action. 



18 



The formulation of financial policy outside of the budget process is also a 
responsibility of the Financial Policy and Planning area. For example, in 
response to the announcement of a moratorium on expenditures by Department 
of Defense agencies for the last half of the third quarter of fiscal year 1988, the 
office developed spending reduction guidelines to help offset anticipated 
decreases in revenue at GPO. These proposals were formally issued by the 
Public Printer and called for reductions in nonessential overtime as well as 
deferrals of travel, training, outside hires, and purchases of nonessential 
supplies and equipment. 

Office staff are available to other GPO areas requiring financial policy and 
planning expertise. The office provided support to the management team 
participating in the 1988 wage negotiations by developing specific cost 
projections for the implementation of various wage and benefit proposals. 
Similar support was provided for management's analysis of the impact of 
granting bargaining status to the American Federation of Government 
Employees. In addition, support was provided for GPO's review of the Office of 
Technology Assessment's draft report, "Informing the Nation: The Future of 
Federal Electronic Printing, Publishing, and Dissemination." 

Quarterly financial briefings covering GPO's operations were presented to GPO's 
management during the year, and in April, staff of the JCP were invited to 
attend the Public Printer's Quarterly Financial Briefing for the first time. 

GPO Appropriations and Transfers 

Millions of Dollars 



140 



130 
120 
110 
100 



90 



80 



70 



60 



50 



40 



30 
20 



10 



129.9 



121.8 



125.7 



122.9 




1980 1981 1982 1983 1984 1985 1986 1987 1988 

jI^^h Salaries n^_ 

^^™ and Expenses Congressional Printing and Binding 



19 



Financial Highlights 



Results of GPO 
Operations 



Title 44 of the U.S. Code requires the U.S. Government Printing Office to fulfill 
the printing and binding needs of the Federal Government, and to distribute 
Government publications to the public. GPO's printing and binding activities are 
accomplished through a network of operations consisting of a Central Office in 
Washington DC, six regional printing plants, 14 regional procurement offices, 
and six satellite procurement offices. Superintendent of Documents' operations 
include the sale of publications, distribution to depository and international 
exchange libraries, reimbursable and statutory distribution, and the cataloging 
and indexing of Government documents. 

All GPO activities are financed through a revolving fund that is reimbursed by 
payments from customer agencies, sales to the public, and transfers from 
various appropriations. These appropriations are used to reimburse GPO for 
costs incurred in performing printing and binding for Congress and for the 
printing, binding, and distribution of Government publications that are, by 
statute, distributed without charge to the recipient. Reimbursements from the 
appropriations are included in GPO's total printing and binding revenue. 

GPO achieved a consolidated net income for fiscal year 1988 of $15.7 million, 
compared to $22.9 million in fiscal year 1987. Total revenue increased to 
$940.9 million in 1988 from $870.6 million in 1987, while total expenses 
increased to $925.2 million in 1988 from $847.8 million in 1987. 



GPO's 1988 Revenue Dollar 



Where It Came From 

66.0C/Purchased Printing 
.5C/Reimbursements 
2.2C/S & E Appropriation 
7.6C/Sales of Publications 
23.7C/ln-House Printing _ 




Where It Went 



62.4C/Procured Printing 
.5C/Capital Expenditures 
1 .5C/Other 



2.2<P/Sales of Publications 
3.4«t/Rents, Comm., Utilities 

6.5<P/Supplies & Materials 

21.8<t/Labor 

1 .7C/Surplus 




20 



Printing and Binding 
Operations 



In-House Printing 
Operations 



Central and Regional 

Printing Procurement 

Operations 



Sales of Publications 
Operations 



In fiscal year 1988 GPO's in-house and commercially-procured activities 
generated revenue of $875.3 million, accounting for 90 percent of GPO's total 
revenue before eliminations. Revenue from commercially-procured printing was 
$648.3 million or 74 percent of the total printing and binding revenue. 

GPO's in-house printing operations earned $7.6 million in net income this year 
compared to net income of $6.7 million in 1987. Total revenues were $227.0 
million compared to $212.7 million last year, while expenses were $219.4 
million compared to $206.0 million in 1987. 

GPO's printing procurement operations generated revenue of $648.3 million 
compared to last year's $591.8 million. Net income was $4.3 million, down from 
the prior year's net income of $4.8 million. Central printing procurement's 
revenue increased to $394.5 million from $354.4 million in 1987. Regional 
printing procurement's revenue grew to $253.8 million in 1988 from $237.4 
million in 1987. 

GPO's Sales of Publications Operations generated net income of $3.8 million on 
sales of $71.1 million, compared to net income of $11.4 million on sales of 
$73.4 million in 1987. Bookstore revenue increased 6 percent to $13.0 million 
in 1988 from $12.3 million in 1987. 



GPO's 1987 Revenue Dollar 



Where It Came From 

64.8C/Purchased Printing 
.6C/Reimbursements 



2.2C/S & E Appropriation 
8.4C/Sales of Publications 
24.0C/ln-House Printing 




Where It Went 



61.5<P/Procured Printing 
.8<WCapital Expenditures 
1 .0C/Other 



2.3C/Sales of Publications 
3.3<f/Rents, Comm., Utilities 

6.1C/Supplies & Materials 

22.4<t/Labor 

2.6<t/Surplus 




21 



Financial Statements 



Consolidated Balance Sheet 

As of September 30, 1988, and 1987 (Notes 1 and 2) (in thousands of dollars) 



Assets 1988 1987 



Current Assets: 






Cash: 






On-hand and in-transit 


$1,150 


$1,860 


Revolving Fund 


114,909 


94,564 


Appropriations 


32,796 


46,271 


Accounts receivable (Note 3) 


218,147 


236,186 


Inventories: 






Publications for sale, net (Note 4) 


12,185 


12,214 


Paper 


15,410 


12,415 


Materials and supplies 


8,769 


8,430 



Total Current Assets $403,364 $411,940 



Property, Plant, and Equipment (Note 5): 

Land and buildings 18,648 18,648 

Equipment and building improvements 111,887 107,761 

130,535 126,409 

Less: accumulated depreciation 76,586 70,348 

Net Property, Plant, and Equipment 53,949 56,061 



Total Assets $457,313 $468,001 



The accompanying notes are an integral part of these financial statements. 

22 



Liabilities and Investment 1988 1987 



Current Liabilities: 

Accounts payable (Note 6) 
Advances from customers (Note 7) 
Accrued salaries, wages, benefits and other 

withholdings 
State and local payroll taxes 

Total Current Liabilities 

Other Liabilities: 

Accrued annual leave 10,064 9,004 

Excess receipts from sales 

of publications, due U.S. Treasury 

(Note 8) 3,799 11,424 



$82,463 


$87,697 


35,633 


35,115 


4,155 


10,038 


1,232 


821 


$123,483 


$133,671 



Total Other Liabilities 


$13,863 


$20,428 


Total Liabilities 


$137,346 


$154,099 


Investment of U.S. Government: 

Appropriations: 
Unliquidated obligations 


33,996 


45,525 


Revolving Fund: 

Contributed capital (Note 9) 

Retained earnings 

Reserved for intra-office funding (Note 8) 


110,136 

164,411 

1 1 ,424 


110,413 

152,464 

5,500 


Total Revolving Fund 


$285,971 


$268,377 


Total Investment 


$319,967 


$313,902 


Total Liabilities and Investment 


$457,313 


$468,001 









23 



Consolidated Statement of Revenue and Expenses 
by Function and Retained Earnings 

Fiscal Years 1988 and 1987 (Notes 1 and 2) (in thousands of dollars) 







Printing and Binding 






In-House 


Purchased 






Printing 


Printing 


Total 


Revenue: 








Printing and Binding 


$227,030 


$648,296 


$875,326 


Sales of Publications 


— 


— 


— 


Appropriations 


- 


- 


- 


Reimbursements 


— 


— 


— 


Total Revenue 


$227,030 


$648,296 


$875,326 


Expenses: 








Personnel compensation and 








benefits 


$142,155 


$29,961 


$172,116 


Travel and transportation 


571 


1,752 


2,323 


Rents, communications and 








utilities 


10,780 


2,961 


13,741 


Printing and reproduction 


- 


607,072 


607,072 


Other services 


2,498 


281 


2,779 


Supplies and materials 


57,902 


1,237 


59,139 


Depreciation 


5,484 


725 


6,209 


Publications sold 


— 


- 


- 


Unsaleable publications 


- 


- 


— 


Total Expenses 


$219,390 


$643,989 


$863,379 


Net Income 


$7,640 


$4,307 


$11,947 



Retained Earnings, Beginning of Fiscal Year 

Retained earnings before payable to U.S. Treasury 

Less: 
Excess receipts from current sales of publications, due U.S. Treasury 

Retained Earnings, End of Fiscal Year 



The accompanying notes are an integral part of these financial statements. 



24 



Information Dissemination 


Eliminations 




Sales Salaries 
of Pnhli- and 


Total GPO 


cations Expenses Total 


1988 1987 



$71,111 



$71,111 



- 


- 


($31,528) 


$843,798 


$772,697 


— 


71,111 


— 


71,111 


73,448 


$21,518 


21,518 


(426) 


21,092 


19,570 


4,895 


4,895 


- 


4,895 


4,931 


$26,413 


$97,524 


($31,954) 


$940,896 


$870,646 



$26,885 


$9,735 


$36,620 


($2,883) 


$205,853 


$195,278 


984 


340 


1,324 


— 


3,647 


3,306 


14,057 


4,777 


18,834 


(563) 


32,012 


28,485 


1,376 


10,024 


1 1 ,400 


(27,784) 


590,688 


535,314 


638 


651 


1,289 


(537) 


3,531 


5,901 


1,899 


640 


2,539 


(187) 


61,491 


53,312 


191 


246 


437 


— 


6,646 


6,096 


16,384 


— 


16,384 


— 


16,384 


17,343 


4,898 


- 


4,898 


- 


4,898 


2,751 


$67,312 


$26,413 


$93,725 


($31,954) 


$925,150 


$847,786 


$3,799 




$3,799 




$15,746 


$22,860 



$152,464 $141,012 



$168,210 $163,872 
3,799 11,408 



$164,411 $152,464 



25 



Consolidated Statement of 
Changes in Financial Position 

Fiscal Years Ended September 30, 1988, and 1987 (Notes 1 and 2) (in 
thousands of dollars) 



1988 1987 



$15,746 
6,646 


$22,860 
6,096 


22,392 
209 

89,521 
4,895 
1,060 


28,956 

46 

95,085 

4,931 

345 


$118,077 


$129,363 


5,019 

5,155 

106,290 


7,030 

8,758 

95,995 


$116,464 


$111,783 


$1,613 


$17,580 



Funds Provided: 

Net Income 

Add expenses not requiring working capital: 
Depreciation 

Total Funds Provided by Operations 
Book value of retired assets 
Appropriations 
Reimbursements 
Increase in accrued annual leave 

Total Funds Provided 

Funds Applied: 

Purchase of fixed assets 

Funds returned to U.S. Treasury from appropriations 

Expended Appropriations (Note 10) 

Total Funds Applied 

Increase in Working Capital 

Changes in Working Capital 

Current Assets: 

Cash: 

On-hand and in-transit 

Revolving Fund 

Appropriations 
Accounts receivable 
Publications for sale 
Paper 
Materials and supplies 

Current Liabilities: 

Accounts payable 

Advances from customers 

Accrued salaries, wages, benefits and other 

withholdings 
State and local payroll taxes 

Increase (Decrease) in Working Capital 



The accompanying notes are an integral part of these financial statements. 

26 



($710) 


$490 


20,345 


(5,772) 


(13,475) 


(3,268) 


(18,039) 


33,593 


(29) 


550 


2,995 


(175) 


339 


116 


5,234 


(7,613) 


(518) 


377 


5,883 


(668) 


(411) 


(50) 


$1,613 


$17,580 



Status of Appropriated Funds 

Fiscal Years Ended September 30, 1988, and 1987 (Notes 1 and 2) 
(in thousands of dollars) 

Total 
Congressional Printing Salaries Appropriated Funds 
Printing and and and 



Binding Binding Expenses 1988 1987 



Status of 
Appropriations, 
Beginning of 
Fiscal Year $26,301 $4,366 $15,604 $46,271 $49,539 

Funds Provided: 

Appropriations 70,359 - 

Intra-Office Funding - - 

Reimbursements — — 



9,162 


89,521 


95,085 


5,500 


5,500 


1,378 


4,895 


4,895 


4,931 



Total Funds Available 


$96,660 


Funds Applied: 




Obligated 




appropriations: 




Current Fiscal Year 


62,522 


Prior Fiscal Years 


18,043 


Funds returned to 




U.S. Treasury 


4,787 


Total Funds Applied 


$85,352 


Status of 




Appropriations, 




End of 




Fiscal Year 


$11,308 



$4,366 $45,161 $146,187 $150,933 



21,507 84,029 71,065 

935 5,229 24,207 24,839 

368 5,155 8,758 



$1,303 $26,736 $113,391 $104,662 



$3,063 $18,425 $32,796 $46,271 



The accompanying notes are an integral part of these financial statements. 

27 



Notes to Financial Statements 

As of September 30, 1988, and September 30, 1987 

(1) Organization 

The Government Printing Office provides printing, binding, and distribution 
services to the Congress and Federal agencies and distributes publications to 
the public. Title 44 of the U.S. Code established the Government Printing Office 
Revolving Fund to finance these operations. The Revolving Fund is reimbursed 
by payments from agencies, receipts from sales of publications, and by 
transfers from the Congressional Printing and Binding and Printing and Binding 
Appropriations. 

Beginning in fiscal year 1988, the Printing and Binding and the 
Congressional Printing and Binding Appropriations were combined into one 
appropriation. This appropriation is for printing and binding performed directly 
for Congress and for printing and binding of publications authorized by law to 
be distributed without charge to recipients. 

The Salaries and Expenses Appropriation is appropriated for necessary 
expenses incurred by the Superintendent of Documents' operations for 
depository library, international exchange, and other by-law distribution of 
publications, and for the cataloging and indexing of Government publications. 
Customer agencies are billed for services performed on a reimbursable basis. 

(2) Summary of Significant Accounting Policies 

Principles of Consolidation -The consolidated financial statements 
include all funds of the Government Printing Office. Inter-fund and inter- 
operational transactions and balances have been eliminated. 

Basis of Accounting -Assets, liabilities, revenue, and expenses are 
recognized on the accrual basis of accounting following generally accepted 
accounting principles and the associated principles of fund accounting. 

Expense Allocations-General and administrative expenses have been 
distributed among the various expense categories. To the extent practicable, 
general and administrative expenses were allocated to the various programs 
based on the estimated level of effort associated with each program. 

Revenue Recognition — Printing and binding revenue is recognized on the 
basis of work performed by the Government Printing Office due to the fact that 
all printing and binding work is required by law to be reimbursed on the basis 
of services rendered. Revenue on work procured from commercial printers is 
recognized based on the constructive-receipt concept. Revenue for distributing 
and selling publications to the public is recognized when publications have 
been shipped, or when services have been performed. 



28 



Inventories- Publications for sale are valued using the first-in, first-out cost 
method. During the year, the valuation method for publications for sale was 
changed from weighted-average cost method to first-in, first-out cost method. 
The effect of this change on the valuation of yearend inventory is immaterial. 
The allowance for unsaleable publications is established to estimate the value of 
potentially obsolete publications held in inventory at fiscal year end. Paper, 
materials and supplies are valued using the moving-average cost method. 

Property, Plant and Equipment- Property, plant, and equipment are 
carried at cost. Expenditures which substantially increase the useful life of the 
assets are capitalized. Maintenance and repairs are expensed as incurred. 
Depreciation is computed using the straight-line method with estimated useful 
lives ranging from 42 to 50 years for buildings and from 3 to 30 years for 
machinery and equipment and building improvements. Depreciation expense 
for machinery and equipment and building improvements is recovered from 
billings to customer agencies. Buildings and structures have been paid from 
Legislative appropriations. Accordingly, depreciation is recorded but not 
reimbursed on these items. 

Intra-Office Funding -The Salaries and Expenses Appropriation was 
funded in part by excess receipts derived from sales of publications. Pursuant 
to Public Law 100-202 this type of funding provided $5,500,000 to the 
Appropriation in fiscal year 1988. For fiscal year 1989, Public Law 100-458 will 
provide the Salaries and Expenses Appropriation $11,424,000 from the sale of 
publications. 

Pensions — Government Printing Office employees are covered by the Civil 
Service Retirement and Disability Fund, the Federal Old-Age, Survivor, and 
Disability Insurance Fund and/or the Federal Employee Retirement Fund. 
Consequently, the GPO is responsible for withholding the required percentage 
from each employee's salary and for contributing to the funds. The agency's 
contributions were $12,645,000 and $11,616,000 in 1988 and 1987, 
respectively. 

Contingencies -GPO is involved in three major lawsuits pending in United 
States Claims Court at September 30, 1988. However, ultimate payment arising 
from the settlement of such actions usually is disbursed from the judgment fund 
administered by the General Accounting Office. Therefore, no estimated liability 
has been recorded. 



29 



(3) Accounts Receivable 

Accounts receivable were comprised of the following: 



September 30 



1988 



1987 



U.S. Government agencies 
Unbilled completed work 
Unbilled work in process 
Other 

Totals 



$35,285,000 

121,588,000 

59,324,000 

1,950,000 

$218,147,000 



$52,256,000 

132,404,000 

50,166,000 

1,360,000 

$236,186,000 



(4) Inventory — Publications for Sale, Net 

Publications for sale, net were comprised of the following: 

September 30 



1988 



1987 



Publications for sale $15,585,000 $15,614,000 

Allowance for unsaleable publications (3,400,000) (3,400,000) 

Publications for sale, net $12,185,000 $12,214,000 



(5) Property, Plant, and Equipment 

Property, plant, and equipment consist of the following: 









September 30 




1988 


1987 




Acquisition 


Accumulated 


Net 


Net 




Value 


Depreciation 


Book Value 


Book Value 


Land 


$9,992,000 





$9,992,000 


$9,992,000 


Buildings 


8,656,000 


$8,655,000 


1,000 


184,000 


Building 










improvements 


34,524,000 


16,274,000 


18,250,000 


16,346,000 


Leasehold 










improvements 


824,000 


153,000 


671,000 


610,000 


Plant machinery 










and equipment 


67,793,000 


45,091,000 


22,702,000 


24,876,000 


Office machinery 










and equipment 


7,105,000 


5,273,000 


1,832,000 


2,129,000 


Computer software 


309,000 


299,000 


10,000 


48,000 


Furniture and 










fixtures 


239,000 


181,000 


58,000 


69,000 


Motor vehicles 


769,000 


660,000 


109,000 


73,000 


Capital 










improvements in 










progress 


324,000 
$130,535,000 


— 


324,000 
$53,949,000 


1,734,000 


Totals 


$76,586,000 


$56,061,000 



30 



(6) Accounts Payable 

Accounts payable were composed of the following: 



Category 



September 30 



1988 



1987 



Commercial printing 

U.S. Government agencies 

Other 

Totals 



$71,090,000 
6,538,000 
4,835,000 

$82,463,000 



$75,007,000 
7,312,000 
5,378,000 

$87,697,000 



(7) Advances from Customers 

Advances from customers were comprised of the following: 

September 30 

Category 1 988 



1987 



Advanced billings to customer agencies $6,127,000 $5,501,000 

Customer deposits for publication orders 8,314,000 8,148,000 

Deferred subscription revenue 18,535,000 19,263,000 

Undelivered publication orders 2,657,000 2,203,000 

Totals $35,633,000 $35,115,000 



(8) Amount Due U.S. Treasury 

Title 44 requires the Government Printing Office to deposit in the United 
States Treasury excess receipts from sales of publications. The amount due the 
U.S. Treasury as of September 30, 1988, was determined as follows: 



Amount due U.S. Treasury, September 30, 
1987 

Amount to be used to finance 
Fiscal Year 1989 Salaries and Expenses 
Appropriation as per Public Law 100-458 

Fiscal Year 1988 Excess Receipts 

Amount Due U.S. Treasury, 
September 30, 1988 



$11,424,000 



(11,424,000) 
3,799,000 



$3,799,000 



31 



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